5 Exercise 12-13 (Algo) Indirect: Preparing statement of cash flows LO P2, P3 2 MONTGOMERY INCORPORATED...

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5 Exercise 12-13 (Algo) Indirect: Preparing statement of cash flows LO P2, P3 2 MONTGOMERY INCORPORATED Comparative Balance Sheets points At December 31 Assets Current Year Prior Year Cash eBook Accounts receivable, net Inventory Total current assets $ 54,100 13,400 120,100 $ 54,200 16,400 References Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable 187,600 66,500 (30,100) $ 224,000 94,800 165,400 56,100 (20,700) $ 200,800 Salaries payable $ 32,000 600 $ 34,400 800 Total current liabilities Equity Common stock, no par value Retained earnings Total liabilities and equity Sales MONTGOMERY INCORPORATED Income Statement For Current Year Ended December 31 Cost of goods sold Gross profit Salaries expense Depreciation expense Income before taxes Income tax expense Net income $ 60,900 (25,300) 35,600 7,500 9,400 18,700 4,500 $ 14,200 32,600 159,800 31,600 $ 224,000 35,200 148,200 17,400 $ 200,800 Additional Information on Current-Year Transactions 5 Exercise 12-13 (Algo) Indirect: Preparing statement of cash flows LO P2, P3 2 MONTGOMERY INCORPORATED Comparative Balance Sheets points At December 31 Assets Current Year Prior Year Cash eBook Accounts receivable, net Inventory Total current assets $ 54,100 13,400 120,100 $ 54,200 16,400 References Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable 187,600 66,500 (30,100) $ 224,000 94,800 165,400 56,100 (20,700) $ 200,800 Salaries payable $ 32,000 600 $ 34,400 800 Total current liabilities Equity Common stock, no par value Retained earnings Total liabilities and equity Sales MONTGOMERY INCORPORATED Income Statement For Current Year Ended December 31 Cost of goods sold Gross profit Salaries expense Depreciation expense Income before taxes Income tax expense Net income $ 60,900 (25,300) 35,600 7,500 9,400 18,700 4,500 $ 14,200 32,600 159,800 31,600 $ 224,000 35,200 148,200 17,400 $ 200,800 Additional Information on Current-Year Transactions