Exercise $16-13$

Indirect: Preparing statement of cash flows

P$2$ P$3$

Use the following information to prepare a statement of cash flows for the current year using the indirect method. Comparative Balance Sheets

At December $31$

Current Year Prior Year

Assets

Cash

$$30,400$

$$30,550$

Accounts receivable, net

Inventory

Total current assets

Equipment.

Accum. depreciation$-$Equipment $.$

Total assets.

Liabilities and Equity

Accounts payable

$$23,900$

$$25,400$

Salaries payable

Total current liabilities

$\frac{500}{24,400}$

$600$

$26,000$

Equity

Common stock, no par value

$110,000$

$100,000$

Retained earnings

Total liabilities and equity.

$\frac{13,050}{\text{\$}139,050}$ $${?}_{{?}_{?}}$MONTGOMERY INC.

Income Statement

For Current Year Ended December $31$Additional Information on Current$-$Year Transactions

a$.$ No dividends are declared or paid.

b$.$ Issued additional stock for $$10,000$ cash.

c$.$ Purchased equipment for cash; no equipment was sold.