use the above financial statements and additional information to prepare a statement of cash flows for the year ended December 31, 2018, using ghe indirect method

MONTGOMERY INC. Comparative Balance Sheets December 31, 2018 and 2017 2018 2017 Assets Cash s 55,600 55,900 12,500 15,400 112,100 89,000 180,200 160,300 62,100 52,700 (28,100) (19,400) $214,200 $193,600 Accounts receivable, net Inventory Total current assets Equipment Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable Salaries payable Total current liabilities Equity Common stock, no par value Retained earnings 29,900 32,200 500 700 32,900 30,400 156,300 145,500 27,500 15,200 $214,200 $193,600 Total liabilities and equity MONTGOMERY INC. Income Statement For Year Ended December 31, 2018 Sales 54,000 Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses Total operating expense Income before taxes 31,600 8,700 6,700 15,400 16,200 3,900 Income tax expense $ 12,300 Net income Additional Information a. No dividends are declared or paid in 2018. h. Issied additional stock for $10 8OO rash in 2018 1of 3 Saved Statement of Cash Flows (Indirect Method) For Year Ended December 31, 2018 Net Income" 12,300 Adjustments to reconcile net income to net cash provided by operations Income statement items not affecting cash Depreciation expense Changes in current operating assets and liabilities $ 12,300 Cash flows from investing activities Cash flows from financing activities S 12,300 55,900 Cash balance at beginning of year 68,200 Cash balance at end of year Prev 1of 3 Next>