Prior Year MONTGOMERY INC. Comparative Balance Sheets December 31 Current Year Assets Cash $ 32,300 Accounts receivable, net 10,600 Inventory 95,100 Total current assets 138,000 Equipment 52, 700 Accum. depreciation-Equipment (23,800) Total assets $166,900 Liabilities and Equity Accounts payable $ 25,300 Salaries payable 500 Total current liabilities 25,800 Equity Common stock, no par value 117,300 Retained earnings 23, 800 Total liabilities and equity $ 166,900 $ 32,400 13,000 75, 100 120,500 44,500 (16,500) $ 148,500 $ 27,400 600 28,000 107,400 13, 100 $ 148,500 MONTGOMERY INC. MONTGOMERY INC. Income Statement For Current Year Ended December 31 Sales $ 46,200 Cost of goods sold (19,200) Gross profit 27,000 Operating expenses Depreciation expense $ 7,300 Other expenses 5,600 Total operating expense 12,900 Income before taxes 14,100 Income tax expense 3,400 Net income 5 10,700 Additional Information on Current-Year Transactions a. No dividends are declared or paid. b. Issued additional stock for $9.900 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.)