Comparative Balance Sheets December 31
Current Year Prior Year
Assets
Cash $ 32,300 $ 32,400
Accounts receivable, net 10,600 13,000
Inventory 95,100 75,100
Total current assets 138,000 120,500
Equipment 52,700 44,500
Accum. depreciation—Equipment (23,800 ) (16,500 )
Total assets $ 166,900 $ 148,500
Liabilities and Equity
Accounts payable $ 25,300 $ 27,400
Salaries payable 500 600
Total current liabilities 25,800 28,000
Equity
Common stock, no par value 117,300 107,400
Retained earnings 23,800 13,100
Total liabilities and equity $ 166,900 $ 148,500

MONTGOMERY INC.
Income Statement
For Current Year Ended December 31
Sales $ 46,200
Cost of goods sold (19,200 )
Gross profit 27,000
Operating expenses
Depreciation expense $ 7,300
Other expenses 5,600
Total operating expense 12,900
Income before taxes 14,100
Income tax expense 3,400
Net income $ 10,700

Additional Information on Current-Year Transactions

No dividends are declared or paid.
Issued additional stock for $9,900 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.)