Prior Year MONTGOMERY INC. Comparative Balance Sheets December 31 Current Year Assets Cash 30,300 Accounts receivable, net 8,900 Inventory 79,800 Total current assets 119,000 Equipment 44,200 Accum. depreciation-Equipment (20,000) Total assets $143,200 Liabilities and Equity Accounts payable $ 21,300 Salaries payable 400 Total current liabilities 21,700 Equity Common stock, no par value 101,800 Retained earnings 19,700 Total liabilities and equity $143,200 $ 30,800 10,900 63,000 104,700 37,300 (13,800) $128, 200 $ 22,900 500 23,400 93,900 10,900 $128,200 MONTGOMERY INC. Income Statement For Current Year Ended December 31 Sales $ 38,500 Cost of goods sold (16,000) Gross profit 22,500 Operating expenses Depreciation expense $ 6,200 Other expenses 4,700 Total operating expense 10,900 Income before taxes 11,600 MONTGOMERY INC. Income Statement For Current Year Ended December 31 Sales $ 38,500 Cost of goods sold (16.000 Gross profit 22,500 Operating expenses Depreciation expense $ 6,200 other expenses 4.700 Total operating expense 10,900 Income before taxes 11,600 Income tax expense 2,800 Net Income $ 8,500 Additional Information on Current-Year Transactions a. No dividends are declared or paid. b. Issued additional stock for $7,900 cash. c. 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 (Amounts to be deducted should be indicated by a minus sign.) Additional information on current-tear transactions a. No dividends are declared or paid. b. Issued additional stock for $7.900 cash c. 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 (Amounts to be deducted should be indicated by a minus sign.) MONTGOMERY, INC Statement of Cash Flow (Indirect Method) For Current Year Ended December 31 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operations Income statement items not affecting cash Changes in current operating assets and liabilities Cash flows from investing activities Cash flows from financing activities Cash balance at beginning of year Cash balance at end of year