OR At December 31. Assets Cash MONTGOMERY INCORPORATED Comparative Balance Sheets Current Year Prior Year $38,200 10,800 96, 800 $ 38,700 13,400 77,500 120,600 45, 800 Accounts receivable, net Inventory Total current assets Equipment Accumulated depreciation-Equipsent Total assets Liabilities and Equity Accounts payable Salaries payable Total current liabilities Equity Common stock, no par value Retained earnings Total liabilities and equity MONTGOMERY INCORPORATED Income Statement For Current Year Ended December 31 Sales Cost of goods sold $ 40,300 145,800 53,600 (24,200) (16,000) $ 175,200 $158,500 $25,700 400 $28,100 500 26,100 28,600 129,300 119,000 19,000 10,900 $ 175,200 $158,500 Gross profit Salaries expense Depreciation expense Incone before taxes Income tax expense (16,700) 23,600 5,000 7,300 11,300 2,400 $ 8,900 Net Incone Additional Information on Current Year Transactions a. No dividends are declared or paid. b. Issued additional stock for $10,300 cash, c. Purchased equipment for cash; no equipment was sold. 1. Use the above information to prepare a statement of cash flows for the current year using the indirect method. (Amounts to be deducted should be indicated by a minus sign.) 1. Use the above information to prepare a statement of cash flows for the current year using the indirect method. (Amounts to be deducted should be indicated by a minus sign.) MONTGOMERY, INCORPORATED Statement of Cash Flows (indirect Method) For Current Year Ended December 31 Cash flows from operating activities Adjustments to reconcile net income to net cash used in operating activities Income statement items not affecting cash Changes in current operating assets and liabilities Cash flows from investing activities Cash flown from financing activities Cash balance at beginning of year Cash balance at end of year S S o B S 0