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Additional Information No dividends are declared or paid in 2018. Issued additio

ID: 2598948 • Letter: A

Question


Additional Information

No dividends are declared or paid in 2018.

Issued additional stock for $10,300 cash in 2018.

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.)

MONTGOMERY INC.
Comparative Balance Sheets
December 31, 2018 and 2017 2018 2017 Assets Cash $ 38,200 $ 38,700 Accounts receivable, net 10,800 13,400 Inventory 96,800 77,500 Total current assets 145,800 129,600 Equipment 53,600 45,800 Accum. depreciation—Equipment (24,200 ) (16,900 ) Total assets $ 175,200 $ 158,500 Liabilities and Equity Accounts payable $ 25,700 $ 28,100 Salaries payable 400 500 Total current liabilities 26,100 28,600 Equity Common stock, no par value 129,300 119,000 Retained earnings 19,800 10,900 Total liabilities and equity $ 175,200 $ 158,500

Explanation / Answer

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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