Qs 16-19 Indirect: Preparation of statement of cash flows LO P1, P2, P3 MONTGOMERY INC. Comparative Balance Sheets December 31, 2016 and 2015 2016 2015 Cash 53,100 53,400 Accounts receivable, net 18,300 22,700 164,000 131,300 Equipment 90,800 77,600 Accum. depreciation-Equipment Total assets 285,200 $256,400 Liabilities and Equity Accounts payable 43,500 47,600 Salaries payable Common stock, no par value 208,600 190,600 Retained eamings 32,400 17,400 Total liabilities and equity 285,200 $256,400 MONTGOMERY INC. ncome Statemen For Year Ended December 31, 2016 Sales 65,300 Cost of goods sold (27.100) 38.200 Gross profit Operating expenses $12,400 Depreciation expense 8,100 Other expenses 20,500 Total operating expense 17,700 Income before taxes 2,700 Income tax expense 15,000 Net income Additional Information a. No dividends are declared or paid in 2016. b. Issued additional stock for $18,000 cash in 2016, c. Purchased equipment for cash in 2016; no equipment was sold in 2016. (1) Use the above financial statements and additional information to prepare a statement of cash flows for the year ended December 31, 2016, using the indirect method. (Amounts to be deducted should be indicated by a minus sign.)