Calibrl (Body) 11 AA- B 1 U abe x A Update To keep up-to-date with security updates, fixes, and improvements, choose Check for Updates. Exercise 16-12 Indirect: Preparing statement of cash flows p2@P3 Use the following information to prepare a statement of cash flows for the current year using the Indirect method. MONTGOMERY INC. Income Statement For Current Year Ended December 31 MONTGOMERY INC. Comparative Balance Sheets Current Year Prior Year $45.575 (18.950 26,625 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $7.200 Other expenses 5.550 Total operating expenses Income before taxes $ 39,550 12.150 0.150 112,850 At December 31 Assets Cash Accounts receivable, net Inventory Total current assets Equipment Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable Salaries payable Total current liabilities Equity Common stock, no par value Retained earning Total liabilities and equity $ 30,400 10,050 90, 100 130.550 49.900 (22.500) $15.95 41.500 05.300) $119.05 13.759 13.875 9.35 $10.50 Income tax expense $ 23.900 500 26400 S. 25.400 609 36.000 Net income TIOLOOO 23.550 100.000 19.099 $15.95 $189.950 Additional Information on Current Year Transactions a. No dividends are declared or paid. b. Issued additional stock for $10,000 cash. e. Purchased equipment for cash: no equipment was sold