Saved 2017 MONTGOMERY INC. Comparative Balance Sheets December 31, 2018 and 2017 2018 Assets Cash $ 55,900 Accounts receivable, net 13,800 Inventory 123,700 Total current assets 193,400 Equipment 68,500 Accum. depreciation-Equipment (31,000) Total assets $230,900 Liabilities and Equity Accounts payable $ 33,000 Salaries payable 600 Total current liabilities 33,600 Equity Common stock, no par value 165,900 Retained earnings 31,400 Total liabilities and equity $230,900 $ 56,300 16,800 97,100 170,200 57,500 (21,200) $206,500 $ 35,200 800 36,000 153, 100 17,400 $206,500 MONTGOMERY INC. Income Statement For Year Ended December 31, 2018 Sales $ 61,200 Cost of goods sold (25,400) Gross profit 35,800 Operating expenses Depreciation expense $ 9,800 Other expenses 7,500 Total operating expense 17,300 Income before taxes 18,500 Income tax expense 4,500 Net income $ 14,000 Additional Information a. No dividends are declared or paid in 2018. b. Issued additional stock for $12,800 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 December 31, 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 Adjustments to reconcile net income to net cash provided by operations: Changes in current operating assets and liabilities $ $ Cash flows from investing activities 0 Cash flows from financing activities $ 0 Cash balance at beginning of year Cash balance at end of year $ 0