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At December 31 Assets Cash MONTGOMERY INCORPORATED Comparative Balance Sheets Accounts receivable, net Inventory Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Salaries payable Total current liabilities Equity Common stock, no par value Retained earnings Total liabilities and equity Current Year $ 30,400 10,050 90,100 130,550 49,900 (22,500) $ 157,950 $ 23,900 500 24,400 110,000 23,550 $ 157,950 Prior Year $ 30,550 12,150 70,150 112,850 41,500 (15,300) $ 139,050 $ 25,400 600 26,000 100,000 13,050 $ 139,050

At December 31 Assets Cash MONTGOMERY INCORPORATED Comparative Balance Sheets Accounts receivable, net Inventory Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Salaries payable Total current liabilities Equity Common stock, no par value Retained earnings Total liabilities and equity Current Year $ 30,400 10,050 90,100 130,550 49,900 (22,500) $ 157,950 $ 23,900 500 24,400 110,000 23,550 $ 157,950 Prior Year $ 30,550 12,150 70,150 112,850 41,500 (15,300) $ 139,050 $ 25,400 600 26,000 100,000 13,050 $ 139,050

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please don't provide answer in image format thank you.

Additional information:--

a) No dividends are declared or paid

b) issued additional stock for $10000 cash

c) purchased equipment for cash; no equipment was sold

Use above information to prepare a statement for cash flow for the current year using indirect method 

MONTGOMERY INCORPORATED Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Salaries expense Depreciation expense Income before taxes Income tax expense Net income $ 45,575 (18,950) 26,625 5,550 7,200 13,875 3,375 $ 10,500
Transcribed Image Text:MONTGOMERY INCORPORATED Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Salaries expense Depreciation expense Income before taxes Income tax expense Net income $ 45,575 (18,950) 26,625 5,550 7,200 13,875 3,375 $ 10,500
At December 31 Assets Cash MONTGOMERY INCORPORATED Comparative Balance Sheets Accounts receivable, net Inventory Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Salaries payable Total current liabilities Equity Common stock, no par value Retained earnings Total liabilities and equity Current Year $ 30,400 10,050 90, 100 130,550 49,900 (22,500) $ 157,950 $ 23,900 500 24,400 110,000 23,550 $ 157,950 Prior Year $ 30,550 12,150 70,150 112,850 41,500 (15,300) $ 139,050 $ 25,400 600 26,000 100,000 13,050 $ 139,050
Transcribed Image Text:At December 31 Assets Cash MONTGOMERY INCORPORATED Comparative Balance Sheets Accounts receivable, net Inventory Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Salaries payable Total current liabilities Equity Common stock, no par value Retained earnings Total liabilities and equity Current Year $ 30,400 10,050 90, 100 130,550 49,900 (22,500) $ 157,950 $ 23,900 500 24,400 110,000 23,550 $ 157,950 Prior Year $ 30,550 12,150 70,150 112,850 41,500 (15,300) $ 139,050 $ 25,400 600 26,000 100,000 13,050 $ 139,050
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