Additional Information a. No dividends are declared or paid in 2018 . b. Issued additional stock for \\( \\$ 16,500 \\) cash in 2018. c. Purchased equipment for cash in 2018; no equipment was sold in 2018. 1. Use the above financial statements and additional information to prepare a statement of cash flows for the year ended December 31 , 2018, using the indirect method. (Amounts to be deducted should be indicated by a minus sign.) MUNIGUMERr, INC. Statement of Cash Flows (Indirect Method) For Year Ended December 31, 2018 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operations: Changes in current operating assets and liabilities Cash balance at end of year MONTGOMERY INC. Comparative Balance Sheets December 31,2018 and 2017 Assets Cash \\( \\begin{array}{rrr}\\text { Accounts receivable, net } & 18,700 \\quad 23,100\\end{array} \\) \\( \\begin{array}{lrr}\\text { Equipment } & 92,800 & 79,000\\end{array} \\) Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable Salaries payable Total current liabilities \\( \\frac{(42,000)}{\\$ 301,100} \\frac{(29,100)}{\\$ 271,100} \\) Equity Common stock, no par value \\( \\$ 44,700 \\$ 48,400 \\) Retained earnings Total liabilities and equity \\( \\frac{800}{45,500} \\frac{1,000}{49,400} \\) MONTGOMERY INC. Income statement For Year Ended December 31, 2018 Sales \\( 216,400 \\quad 199,900 \\) Cost of goods sold Gross profit \\( \\$ 78,000 \\) Operating expenses \\( \\frac{(32,300)}{45,700} \\) Depreciation expense Other expenses \\( \\frac{39,200}{\\$ 301,100} \\frac{21,800}{\\$ 271,100} \\) Total operating expense Income before taxes \\( \\$ 12,900 \\) \\( \\begin{array}{r}9,700 \\\\ \\hline\\end{array} \\) \\( \\frac{22,600}{23,100} \\)