Question

Tasha Crews TC ab o s Documenti - Word Search Insert Draw Design Layout References Mailings Review View Help A A A E 21 AaBbCcDc AaBbCcDc AaBb C AaBbccc Add Uab x x ADA 19 - 1 Normal 1 No Spac... Heading 1 Heading 2 Title Find Replace Select Dictate Voice Styles Editing 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.) (Ctrl) Font Paragraph MUNTLOMERY INC Comparative Balance Sheets December 31 Current Year Prior Year Assets Cash $63,500 $ 63,900 Accounts receivable. net 18,100 22. 100 Inventory 162,300 127, 700 Total current assets 243,900 213,700 Equipment 89,900 75, 600 d . depreciation Equipment (40,500) 128,000) Total assets $293,300 $261,300 Liabilities and Equity Accounts payable $43, 100 $ 46,500 Salaries payable 800 2.000 Total current liabilities 43,900 47,500 Equity Common stock, no par value 210,000 192,000 Retained earnings 39.400 21,800 Total liabilities and equity $293,200 $261,300 Sales MONTGOMERY INC. Income Statement For Current Year Ended December 31 $ 77,200 Cont of goods sold 132, 100) Greas profit 45, 100 Operating expenses Depreciation expense $12,500 Other expenses 9,400 Total operating expense 21,900 Income before taxes 23,200 Income tax expense 5,600 Net Income 5 17,600 Additional Information on Carrent-Year Transactions 2 No dividends art declared or paid. h. Issued additional stock for $18,000 cash Purchased equipment for cash no equipement was sold Focus B - - 2 190 words X Type here to search

Answer 1

$ 17,600 MONTGOMERY, INC. Statement of Cash flows (Indirect Method) For the Current Year ended December. 31 Cash flows from Operating Activities: Net Income Adjustments to reconcile Net Income to Net Cash flows from Operating activities Changes in Current Operating assets and liabilities Depreciation expenses Decrease in Accounts Receivables Increases in Inventory Decrease in accounts Payable Decrease in salaries Payable Net Cash flow from operating activities Cash Flows from Investing Activities Purchase of equipment Net Cash flow from investing activities Cash Flows from Financing Activities Issuance of Stock Net Cash flow from financing activities Net Increase in Cash Cash at the beginning of the period Cash at the end of the period $ $ $ $ $ 12,500 4,000 (34,600) (3,400)| (200) S $ (21,700) (4,100) $ (14,300) $ (14,300) $ 18,000 $ $ $ $ 18,000 (400) 63,900 63,500