Assets Cash Comparative Balance Sheets December 31, 2018 and 2017 Accounts receivable, net Inventory Total current assets Equipment Accum. 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 MONTGOMERY INC. Income Statement For Year Ended December 31, 2018 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses Total operating expense Income before taxes Income tax expense Net income $ 9,400 7,400 2018 $ 53,800 13,400 120,100 $ 32,000 600 32,600 187,300 165,100 66,500 56,100 (30,100) (20,700) $223,700 $200,500 2017 $ 60,900 (25,300) 35,600 $ 53,900 16,400 94,800 16,800 18,800 4,500 $ 14,300 159,400 147,900 31,700 17,400 $223,700 $200,500 $ 34,400 800 35, 200

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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-5
02:12:20
Assets
Cash
MONTGOMERY INC.
Comparative Balance Sheets
December 31, 2018 and 2017
Accounts receivable, net
Inventory
Total current assets
Equipment
Accum. 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
MONTGOMERY INC.
Income Statement
For Year Ended December 31, 2018
Sales
Cost of goods sold
Gross profit
Operating expenses
Depreciation expense
Other expenses
Total operating expense
Income before taxes
Income tax expense
Net income
$ 9,400
7,400
2018
$ 53,800
13,400
120, 100
187,300
66,500
(30,100)
$223,700
$ 32,000
600
32,600
$ 60,900
(25,300)
35,600
2017
16,800
18,800
4,500
$ 14,300
$ 53,900
16,400
94,800
165, 100
56,100
(20,700)
159,400
147,900
31,700
17,400
$223,700 $200,500
$200, 500
$ 34,400
800
35, 200
Transcribed Image Text:-5 02:12:20 Assets Cash MONTGOMERY INC. Comparative Balance Sheets December 31, 2018 and 2017 Accounts receivable, net Inventory Total current assets Equipment Accum. 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 MONTGOMERY INC. Income Statement For Year Ended December 31, 2018 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses Total operating expense Income before taxes Income tax expense Net income $ 9,400 7,400 2018 $ 53,800 13,400 120, 100 187,300 66,500 (30,100) $223,700 $ 32,000 600 32,600 $ 60,900 (25,300) 35,600 2017 16,800 18,800 4,500 $ 14,300 $ 53,900 16,400 94,800 165, 100 56,100 (20,700) 159,400 147,900 31,700 17,400 $223,700 $200,500 $200, 500 $ 34,400 800 35, 200
Additional Information
a. No dividends are declared or paid in 2018
b. Issued additional stock for $11,500 cash in 2018
c. Purchased equipment for cash in 2018, no equipment was sold in 2018.
1. Use the above financial statements and additional information to prepare a statement of cash flows for the year ended December 31,
2018, using the indirect method. (Amounts to be deducted should be indicated by a minus sign.)
Transcribed Image Text:Additional Information a. No dividends are declared or paid in 2018 b. Issued additional stock for $11,500 cash in 2018 c. Purchased equipment for cash in 2018, no equipment was sold in 2018. 1. Use the above financial statements and additional information to prepare a statement of cash flows for the year ended December 31, 2018, using the indirect method. (Amounts to be deducted should be indicated by a minus sign.)
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