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MONTGOMERY INCORPORATED Comparative Balance Sheets At December 31 Current Year Prior Year Assets...

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Accounting

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 depreciationEquipment (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.

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