Use the above information to prepare a statement of cash flows for the current year using the indirect method

Prior Year MONTGOMERY INC. Comparative Balance Sheets December 31 Current Year Assets Cash $ 58,600 Accounts receivable, net 17,300 Inventory 155, 100 Total current assets 231,000 Equipment 85,900 Accum. depreciation-Equipment (38,900) Total assets $278,000 Liabilities and Equity Accounts payable $ 41,400 Salaries payable 800 Total current liabilities 42,200 Equity Common stock, no par value 196, 200 Retained earnings 39,600 Total liabilities and equity $278,000 $ 59,000 21,200 122,500 202,700 72,500 (26,800) $248,400 $ 44,500 1,000 45,500 181,100 21,800 $248,400 MONTGOMERY INC. Income Statement For Current Year Ended December 31 Sales $ 76,600 Cost of goods sold (31,800) Gross profit 44,800 Operating expenses Depreciation expense $12,100 Other expenses 9,300 Total operating expense 21,400 Income before taxes 23,400 Income tax expense 5,600 Net income $ 17,800 Additional Information on Current-Year Transactions a. No dividends are declared or paid. b. Issued additional stock for $15,100 cash. c. Purchased equipment for cash; no equipment was sold. 1. Use the above information to prepare a statement of cash flows for the current year using the indirect method. (Amounts to be deducted should be indicated by a minus sign.) MONTGOMERY, INC. Statement of Cash Flows (Indirect Method) For Current Year Ended December 31 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operations: Income statement items not affecting cash Changes in current operating assets and liabilities Cash flows from investing activities Cash flows from financing activities Cash balance at beginning of year Cash balance at end of year