QS 12-19 Indirect: Preparing statement of cash flows LO P1, P2, P3 2017 $ 30,800 10.900 3,000 119.000 MONTGOMERY INC. Comparative Balance Sheets December 31, 2018 and 2017 2018 Assets Cash $ 30,300 Accounts receivable, net 8,900 Inventory 79,800 Total current assets 119,000 Equipment 44,200 Accum. depreciation-Equipment (20,000) Total assets $143,200 Liabilities and Equity Accounts payable $ 21,300 Salaries payable 400 Total current liabilities 21,700 Equity Common stock, no par value 101,800 Retained earnings 19,700 Total liabilities and equity $ 143,200 104,700 37,300 (13,800) $128, 200 $ 22,900 500 23,400 93,900 10,900 $128, 200 MONTGOMERY INC. Income Statement For Year Ended December 31, 2018 Sales $ 38,500 Cost of goods sold (16,000) Gross profit 22,500 Operating expenses Depreciation expense $ 6,200 Other expenses 4,700 Total operating expense 10,900 Income before taxes 11,600 Income tax expense 2,800 Net income $ 8,800 Additional Information a. No dividends are declared or paid in 2018. b. Issued additional stock for $7,900 cash in 2018. c. 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 Decembe 2018, using the indirect method. (Amounts to be deducted should be indicated by a minus sign.) MONTGOMERY, INC. Statement of Cash Flows (Indirect Method) For Year Ended December 31, 2018 Cash flows from operating activities