MONTGOMERY INCORPORATED
Comparative Balance Sheets
At December 31	Current Year	Prior Year
Assets
Cash	$ 78,500	$ 78,600
Accounts receivable, net	16,700	20,400
Inventory	149,700	117,900
Total current assets	244,900	216,900
Equipment	82,900	69,800
Accumulated depreciationEquipment	(37,500)	(25,700)
Total assets	$ 290,300	$ 261,000
Liabilities and Equity
Accounts payable	$ 39,900	$ 42,700
Salaries payable	700	1,000
Total current liabilities	40,600	43,700
Equity
Common stock, no par value	210,200	195,500
Retained earnings	39,500	21,800
Total liabilities and equity	$ 290,300	$ 261,000

MONTGOMERY INCORPORATED
Income Statement
For Current Year Ended December 31
Sales	$ 76,100
Cost of goods sold	(31,600)
Gross profit	44,500
Salaries expense	9,400
Depreciation expense	11,800
Income before taxes	23,300
Income tax expense	5,600
Net income	$ 17,700

Additional Information on Current-Year Transactions

1. No dividends are declared or paid.
2. Issued additional stock for $14,700 cash.
3. 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.