Please don't provide answer in image format thank you 4Additional Information on Current-Year Transactionsa. No dividends are declared or paid.b. Issued additional stock for $12,800 cash.c. 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 bededucted should be indicated by a minus sign.)MONTGOMERY, INCORPORATEDStatement of Cash Flows (Indirect Method)For Current Year Ended December 31Cash flows from operating activitiesNet income.Adjustments to reconcile net income to net cash used in operating activities:Income statement items not affecting cashDepreciation expenseChanges in current operating assets and liabilitiesDecrease in accounts receivableIncrease in inventoryDecrease in accounts payableDecrease in salaries payable< Prev$5 of 914,100Next > At December 31AssetsCash.MONTGOMERY INCORPORATEDComparative Balance SheetsAccounts receivable, netInventoryTotal current assetsEquipmentAccumulated depreciation-EquipmentTotal assetsLiabilities and EquityAccounts payableSalaries payableTotal current liabilitiesEquityCommon stock, no par valueRetained earningsTotal liabilities and equityMONTGOMERY INCORPORATEDIncome StatementFor Current Year Ended December 31$ 61,800(25,600)36,2007,7009,900SalesCost of goods soldGross profitSalaries expenseDepreciation expenseIncome before taxes.Income tax expenseNet income18,6004,500$ 14,100Current Year Prior Year$ 57,80014,300128,200200,30071,000(32,100)$ 239,200$ 34,20060034,800172,900)31,500$ 239,200$ 57,90017,600101,700177,20060,200(22,200)$ 215,200$ 36,90080037,700160,10017,400$ 215,200

A cash flow statement indicates cash inflow and outflow information for a particular time period and…

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 MONTGOMERY INCORPORATED Income Statement For Current Year Ended December 31 $ 61,800 (25,600) Sales Cost of goods sold Gross profit Salaries expense Depreciation expense Income before taxes Income tax expense Net income 36,200 7,700 9,900 18,600 4,500 $ 14,100 Current Year Prior Year $ 57,800 14,300 128,200 200,300 71,000 (32,100) $ 239,200 $ 34,200 600 34,800 172,900 31,500 $ 239,200 $ 57,900 17,600 101,700 177,200 60,200 (22,200) $ 215,200 $ 36,900 800 37,700 160,100 17,400 $ 215,200