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Q value. ' MOD points Q512-19'lndirect: Preparation oflstatement of cash flows LO, P1, P2, P3 MONTGOMERY me; . Comparative Balance Sheets December 31, 2016 and 2015 . y 7 2016 2015 Assets . l -X Cash. . ' - t -. $ 53,800 $ 53,900 Accounts receivable, net . 13,400 16,400 Inventory ' > ' 120,100 94,800 Total current assets 5 - 130,550- 112,850 Equipment . ' 66,5OO . 56,100 Accum. depreciation-Equipment . , (SOJOO) (20,700) . Total assets 1 ' s223,700 s200,500 ; Liabilities and Equity '. > - v - x Q Accounts payable ' . $ 32,000 $ "34,400 ' .l Salaries payable . ' 600 800 Total otlrrent liabilities r . - . '24;4oo v 26,000 3 Equity ' ' . , , 1 Common stock, no par value '159,400 147,900 3 Retained earnings ' - H 31,700 17,400 l --;-+- .-----V l Total liabilities and equity - $223,700 3200500 hfinle/"foACDX/ "HI"Q- C CD eztomheducation.cont/hm.tpx?;0.46675271872492485'1480911900858 Totalkliabilities and equity $223,700 3200500 e MONTGOMERY INC. Income Statement For Year Ended December 31, 2016 1 Sales $' 60,900 i Cost of goods sold " (25,300) Gross profit 35,600 Operating expenses - t Depreciation expense $ 9,4OO . Other expenses 7,400 Total operating expense 16,8OO Income before taxes .18,800 I Income tax expense 4,5OO ' Net income $ 14,300 ' Additional Information l a. No dividends are declared or paid in 2016 1 b. Issued additional stock for $11,500 cash in 2016. 1 c. Purchased equipment for cash in 2016; no equipment was sold in 2016. I (1)Use the above financial statements and. additio the year ended December 31, 2016, using the indicated by a minus sign.) nal information to prepare a statement of cash flows for indirect method. (Amounts to be deducted should be-!--'- 'Uw v In mw" EM law" 0 C 'V G ezto.mheducation.com/hm.tpx?-:O.46675271872492485-1480911900858 'Cash flaws from Operating activities" ' Net income Adjustments to reconcile net income to net cash provided by operations: l Changes in current operating assets and liabilities Cash flows from investing activities Cash flows from financing activities Cash balanoe at beginning of year Cash balance at end of year $ Net increase in cash 7 $ L