Additional Information on Current-Year Transactions a. No dividends are declared or paid. b. Issued additional stock for $20,000 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. Note: Amounts to be deducted should be indicated by a minus sign. MONTGOMERY, INCORPORATED Statement of Cash Flows (Indirect Mothod) For Current Year Ended Decomber 31 Cash flows from operating activities Adjustments to reconcile net income to net cash used in operating activities: Income statement items not affecting cash Changes in current operating assets and liabilities Cash flows from investing activities $ 0 Cash flows from financing activities Cash balance at beginning of year Cash balance at end of year Cash paid for equipment Cash received from stock issuance Decrease in accounts payable Decrease in accounts receivable Decrease in inventory Decrease in salaries payable Depreciation expense Increase in accounts payable Increase in accounts receivable Increase in inventory Depreciation expense Increase in accounts payable Increase in accounts receivable Increase in inventory Increase in salaries payable