QS 12-19 Indirect: Preparing statement of cash flows LO P1, P2, P3

MONTGOMERY INC. Comparative Balance Sheets December 31, 2018 and 2017
		2018				2017
Assets
Cash	$	31,000			$	31,200
Accounts receivable, net		10,300				12,600
Inventory		92,400				72,800
Total current assets		133,700				116,600
Equipment		51,200				43,100
Accum. depreciationEquipment		(23,100	)			(16,000	)
Total assets	$	161,800			$	143,700
Liabilities and Equity
Accounts payable	$	24,600			$	26,600
Salaries payable		500				600
Total current liabilities		25,100				27,200
Equity
Common stock, no par value		112,800				103,400
Retained earnings		23,900				13,100
Total liabilities and equity	$	161,800			$	143,700

MONTGOMERY INC. Income Statement For Year Ended December 31, 2018
Sales				$	45,900
Cost of goods sold					(19,100	)
Gross profit					26,800
Operating expenses
Depreciation expense	$	7,100
Other expenses		5,500
Total operating expense					12,600
Income before taxes					14,200
Income tax expense					3,400
Net income				$	10,800

Additional Information

1. No dividends are declared or paid in 2018.
2. Issued additional stock for $9,400 cash in 2018.
3. Purchased equipment for cash in 2018; no equipment was sold in 2018.

1. Use the above financial statements and additional information to prepare a statement of cash flows for the year ended December 31, 2018, using the indirect method. (Amounts to be deducted should be indicated by a minus sign.)