Prior Year MONTGOMERY INC. Comparative Balance Sheets December 31 Current Year Assets Cash $ 30,400 Accounts receivable, net 10,050 Inventory 90, 100 Total current assets 130,550 Equipment 49,900 Accum. depreciation-Equipment (22,500) Total assets $157,950 Liabilities and Equity Accounts payable $ 23,990 Salaries payable 500 Total current liabilities 24,480 Equity Common stock, no par value 110,080 Retained earnings 23,550 Total liabilities and equity $157,95 $ 30,55 12,150 70 150 112,850 41,500 (15,300) $139,050 $ 25,480 600 26,000 188,888 13,050 $139,85e MONTGOMERY INC. 30,400 10,850 90, 100 130,550 49,900 (22,500) $157,95 $ 39,550 12, 150 78,158 112,850 41,500 (15,388) $139, ese Assets Cash Accounts receivable, net Inventory Total current assets Equipment Accun. depreciation Equipment Total assets Liabilities and Equity Accounts payable Salaries payable Total current liabilities Equity Common stock, no par value Retained earnings Total liabilities and equity $ 23,990 500 24,488 $ 25,400 600 26,888 110,000 23,550 $157,950 188,888 13,ese $139, ese MONTGOMERY INC. Income Statement For Current Year Ended December 31 Sales $ 45,575 Cost of goods sold (18,958) Gross profit 26,625 Operating expenses Depreciation expense $ 7,200 other expenses 5,550 Total operating expense 12,750 Income before taxes 13,875 Income tax expense 3.375 Net income 10,588 Additional Information on Current-Year Transactions a. No dividends are declared or paid. b. Issued additional stock for $10,000 cash. c. Purchased equipment for cash: no equipment was sold. 1 lise the above information to nepare statement of cash flows for the income tax expense Net Income 3,3/5 $ 19,50 Additional Information on Current-Year Transactions a. No dividends are declared or paid. b. Issued additional stock for $10,000 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 deducted should be indicated by a minus sign.) MONTGOMERY, INC 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 provided by operations Income statement items not affecting cash Changes in current operating assets and liabilities S 0 Cas fios from investing activities