MONTGOMERY INCORPORATED

Comparative Balance Sheets

At December $31$ Current Year Prior Year

Assets

Cash $ $38,200$ $ $38,700$

Accounts receivable, net $10,80013,400$

Inventory $96,80077,500$

Total current assets $145,800129,600$

Equipment $53,60045,800$

Accumulated depreciation$$Equipment $(24,200)(16,900)$

Total assets $ $175,200$ $ $158,500$

Liabilities and Equity

Accounts payable $ $25,700$ $ $28,100$

Salaries payable $400500$

Total current liabilities $26,10028,600$

Equity

Common stock, no par value $129,300119,000$

Retained earnings $19,80010,900$

Total liabilities and equity $ $175,200$ $ $158,500$

MONTGOMERY INCORPORATED

Income Statement

For Current Year Ended December $31$

Sales $ $40,300$

Cost of goods sold $(16,700)$

Gross profit $23,600$

Salaries expense $5,000$

Depreciation expense $7,300$

Income before taxes $11,300$

Income tax expense $2,400$

Net income $ $8,900$

Additional Information on Current$-$Year Transactions

No dividends are declared or paid.

Issued additional stock for $$10,300$ cash.

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.