Question

Show calculations if applicable:

11 ΜΟΝTGOME RY INC. Comparative Balance Sheets December 31 0.83 Prior Year Current Year points Assets $ 58,200 18,300 Cash $58,100 22,300 128,800 209,200 76,200 Accounts receivable, net 164,100 240,600 90,900 Inventory еВook Total current assets Equipment Accum. depreciation- Equipment |(41,000) |(28,100) Print $257,300 $290,500 Total assets Liabilities and Equity Accounts payable Salaries payable References $ 43,600 $46,600 900 1,100 47,700 44,500 Total current liabilities Equity Common stock, no par 202,500 185,700 value Retained earnings 43,500 23,900 Total liabilities and $290,500 $257,300 equity

Answer 1

	Statement of cash flow (Indirect method)
	Cash flow from operating activities
	Net income					19,600
	Adjustments to reconcile net income to net cash
	provided by operations
	Income statement items not affecting
	cash.
	Depreciation expense					12,900
	Changes in current operating assets & liabilities
	Decrease in account receivable					4,000
	increase in inventory					-35300
	decrease in accounts payable					-3000
	Decrease in salaries payable					-200
	net cash used by operating activities						-2,000
	cash from investing activities
	purchase of Equipment					-14700
	net cash used by investing activities						-14,700
	cash from financing activities
	cash from stock issue					16,800
	net cash provided by financing activities						16,800
	net decrease incash						100
	cash at the beginning						58,100
	Cash at year end						58,200