MONTGOMERY INCORPORATED Comparative Balance Sheets At December 31 Current Year Prior Year Assets Cash 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 Sales Cost of goods sold Gross profit Salaries expense Depreciation expense Income before taxes Income tax expense Net income $ 83,500 (34,600) 48,900 10,300 12,900 25,700 6,100 $ 19,600 $ 58,200 18,300 164 100 240,600 90,900 (41,000) $ 290,500 $ 43,600 900 44,500 202,500 43,500 $ 290,500 $ 58,100 22,300 128,800 209,200 76,200 (28,100) $ 257,300 $ 46,600 1,100 47,700 185,700 23,900 $ 257,300 Additional Information on Current-Year Transactions a. No dividends are declared or paid. b. Issued additional stock for $16,800 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. Note: Amounts to be deducted should be indicated by a minus sign. MONTGOMERY, INCORPORATED Statement of Cash Flows (Indirect Method)
MONTGOMERY INCORPORATED Comparative Balance Sheets At December 31 Current Year Prior Year Assets Cash 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 Sales Cost of goods sold Gross profit Salaries expense Depreciation expense Income before taxes Income tax expense Net income $ 83,500 (34,600) 48,900 10,300 12,900 25,700 6,100 $ 19,600 $ 58,200 18,300 164 100 240,600 90,900 (41,000) $ 290,500 $ 43,600 900 44,500 202,500 43,500 $ 290,500 $ 58,100 22,300 128,800 209,200 76,200 (28,100) $ 257,300 $ 46,600 1,100 47,700 185,700 23,900 $ 257,300 Additional Information on Current-Year Transactions a. No dividends are declared or paid. b. Issued additional stock for $16,800 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. Note: Amounts to be deducted should be indicated by a minus sign. MONTGOMERY, INCORPORATED Statement of Cash Flows (Indirect Method)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:MONTGOMERY INCORPORATED
Comparative Balance Sheets
At December 31
Current Year
Prior Year
Assets
Cash
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
Sales
Cost of goods sold
Gross profit
Salaries expense
Depreciation expense
Income before taxes
Income tax expense
Net income
$ 83,500
(34,600)
48,900
10,300
12,900
25,700
6,100
$ 19,600
$ 58,200
18,300
164 100
240,600
90,900
(41,000)
$ 290,500
$ 43,600
900
44,500
202,500
43,500
$ 290,500
$ 58,100
22,300
128,800
209,200
76,200
(28,100)
$ 257,300
$ 46,600
1,100
47,700
185,700
23,900
$ 257,300
Additional Information on Current-Year Transactions
a. No dividends are declared or paid.
b. Issued additional stock for $16,800 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.
Note: Amounts to be deducted should be indicated by a minus sign.
MONTGOMERY, INCORPORATED
Statement of Cash Flows (Indirect Method)
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