QS 12-19 Indirect: Preparation of statement of cash flows LO P1, P2, P3 MONTGOMERY INC Comparative Balance Sheets December 31, 2016 and 2015 2016 2015 Assets 54,100 54,200 Cash Accounts receivable, net 13,400 16,400 Inventory 120,100 94,800 Total current assets 130,550 112,850 Equipment 66,500 56,100 Accum. depreciation Equipment (30,100) (20,700) 224,000 $200,800 Total assets Liabilities and Equity 32,000 34,400 Accounts payable Salaries payable 600 800 Total current liabilities 24,400 26,000 Equity Common stock, no par value 159,800 148,200 Retained earnings 31,600 17,400 Total liabilities and equity 224,000 $200,800 MONTGOMERY INC Income Statement For Year Ended December 31, 2016 60,900 Sales Cost of goods sold (25,300) Gross profit 35,600 Operating expenses 9,400 Depreciation expense Other expenses 7,500 Total operating expense 16,900 18,700 Income before taxes ncome tax expense 4,500 14,200 Net income Additional Information a. No dividends are declared or paid in 2016 b. Issued additional stock for $11,600 cash in 2016. c. Purchased equipment for cash in 2016, no equipment was sold in 2016