do not say net cash used by operating activity, please this is not in the answer section

2017 MONTGOMERY, INC. Comparative Balance Sheets December 31, 2018 and 2017 2018 Assets Cash $ 34,500 Accounts receivable, net 10,000 Inventory 89,600 Total current assets 134,100 Equipment 49,600 Accum. depreciation Equipment (22,400) Total assets $ 161,300 Liabilities and Equity Accounts payable $ 23,800 Salaries payable 400 Total current liabilities 24, 200 Equity Common stock, no par value 117,100 Retained earnings 20,000 Total liabilities and equity $161,300 $ 34,900 12,400 71,700 119,000 42,400 (15,600) $145,800 $ 25,900 500 26,400 108,500 10,900 $145,800 MONTGOMERY INC. Income Statement For Year Ended December 31, 2018 Sales $ 39,600 Cost of goods sold (16,400) Gross profit 23, 200 Operating expenses MONTGOMERY INC. Income statement For Year Ended December 31, 2018 Sales $ 39,600 Cost of goods sold 16,400) Gross profit 23,200 Operating expenses Depreciation expense $ 6,800 Other expenses Total operating expense 11.700 Incone before taxes 11,500 Income tax expense 2.400 Net Income 59,100 Additional Information a. No dividends are declared or paid in 2018 b. Issued additional stock for $8,600 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.) Answer is not complete. MONTGOMERY, INC. Statement of Cash Flows (Indirect Method) For Year Ended December 31, 2018 Net Income $ 9,100 Adjustments to reconcile net income to net cash provided by operations: Income statement items not affecting cash Depreciation expense 6,800 Decrease in accounts receivable x Changes in current operating assets and liabilities Increase in inventory (17,900) Decrease in accounts payable (2,100) Decrease in salaries payable (100) Decrease in accounts payable X 10,900 X Depreciation expense x 0 Cash paid for equipment x Net cash used in investing activities $ Cash flows from investing activities Cash paid for equipment (7,200) Cash paid for equipment Net cash used in investing activities $ 6,700 (7,200) (100) 10,900 X 0 X x X $ 6,700 (7,200) Decrease in salaries payable Decrease in accounts payable Depreciation expense Cash paid for equipment Net cash used in investing activities Cash flows from investing activities Cash paid for equipment Cash paid for equipment Net cash used in investing activities Cash flows from financing activities Cash received from stock issuance Increase in salaries payable Net cash provided by financing activities Net decrease in cash Cash balance at beginning of year Cash balance at end of year $ (7,200) 8,600 $ $ 8,600 8,100 $ 8,100