Prior Year MONTGOMERY INC. Comparative Balance Sheets December 31 Current Year Assets Cash $ 58,200 Accounts receivable, net 18,300 Inventory 164,100 Total current assets 240,600 Equipment 90,900 Accum. depreciation-Equipment (41,000) Total assets $290,500 Liabilities and Equity Accounts payable $ 43,600 Salaries payable 900 Total current liabilities 44,500 Equity Common stock, no par value 202,500 Retained earnings 43,500 Total liabilities and equity $290,500 $ 58,100 22,300 128,800 209, 200 76,200 (28,100) $257,300 $ 46,600 1,100 47,700 185, 700 23,900 $257,300 MONTGOMERY INC. Income Statement For Current Year Ended December 31 Sales $ 83,500 Cost of goods sold (34,600) Gross profit 48,900 Operating expenses Depreciation expense $12,900 Other expenses 10,300 Total operating expense 23,200 Income before taxes 25, 700 Income tax expense 6,100 Net income $ 19,600 Additional Information on Current-Year Transactions