MONTGOMERY INCORPORATED Comparative Balance Sheets At December 31 Current Year Prior Year Assets Cash $ 78,500 $
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Question:
MONTGOMERY INCORPORATED | ||
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Comparative Balance Sheets | ||
At December 31 | Current Year | Prior Year |
Assets | ||
Cash | $ 78,500 | $ 78,600 |
Accounts receivable, net | 16,700 | 20,400 |
Inventory | 149,700 | 117,900 |
Total current assets | 244,900 | 216,900 |
Equipment | 82,900 | 69,800 |
Accumulated depreciationEquipment | (37,500) | (25,700) |
Total assets | $ 290,300 | $ 261,000 |
Liabilities and Equity | ||
Accounts payable | $ 39,900 | $ 42,700 |
Salaries payable | 700 | 1,000 |
Total current liabilities | 40,600 | 43,700 |
Equity | ||
Common stock, no par value | 210,200 | 195,500 |
Retained earnings | 39,500 | 21,800 |
Total liabilities and equity | $ 290,300 | $ 261,000 |
MONTGOMERY INCORPORATED | |
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Income Statement | |
For Current Year Ended December 31 | |
Sales | $ 76,100 |
Cost of goods sold | (31,600) |
Gross profit | 44,500 |
Salaries expense | 9,400 |
Depreciation expense | 11,800 |
Income before taxes | 23,300 |
Income tax expense | 5,600 |
Net income | $ 17,700 |
Additional Information on Current-Year Transactions
- No dividends are declared or paid.
- Issued additional stock for $14,700 cash.
- 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.
Note: Amounts to be deducted should be indicated by a minus sign.
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