MONTGOMERY INC. Comparative Balance Sheets December 31 Current Year Prior Year Assets Cash $ 55,600 $ 55,900 Accounts receivable, net 12,500 15,400 Inventory 112,100 89,000 Total current assets 180,200 160,300 Equipment 62,100 52,700 Accum. depreciation—Equipment (28,100 ) (19,400 ) Total assets $ 214,200 $ 193,600 Liabilities and Equity Accounts payable $ 29,900 $ 32,200 Salaries payable 500 700 Total current liabilities 30,400 32,900 Equity Common stock, no par value 156,300 145,500 Retained earnings 27,500 15,200 Total liabilities and equity $ 214,200 $ 193,600 MONTGOMERY INC. Income Statement For Current Year Ended December 31 Sales $ 54,000 Cost of goods sold (22,400 ) Gross profit 31,600 Operating expenses Depreciation expense $ 8,700 Other expenses 6,700 Total operating expense 15,400 Income before taxes 16,200 Income tax expense 3,900 Net income $ 12,300 Additional Information on Current-Year Transactions No dividends are declared or paid. Issued additional stock for $10,800 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. (Amounts to be deducted should be indicated by a minus sign.)