the following informa a statement of cash flows for the current year using the indirect method. .. Exercise 12-12 Indirect: Preparing statement of cash flows P2 P3 MONTGOMERY INC. Comparative Balance Sheets Current Year Prior Year MONTGOMERY INC. Income Statement For Current Year Ended December 31 December 31 Assets $45,575 (18.950 25.625 Accounts receivable, net Inventory.. focal current assets Equipment $ 30,400 10,050 90.100 130,550 49,900 (22,500) $157,950 $ 30,550 12,150 70,150 112,850 41,500 (15.300) $139,050 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense... Other expenses Total operating expenses ... Income before taxes Income tax expense Net income $7.200 5,550 kecum. depreciation-Equipment... Dal assets 12.750 13.875 3.375 $10.500 $ 23.900 500 24,400 $ 25,400 600 26,000 Liabilities and Equity Accounts payable Salaries payable Total current liabilities Equity Common stock, no par value.. Retained earnings... Total liabilities and equity. 110,000 25.50 5570 100,000 13,050 $139,050 Additional Information on Current-Year Transactions a. No dividends are declared or paid. b. Issued additional stock for $10,000 cash. c. Purchased equipment for cash: no equipment was sold