MONTGOMERY INCORPORATED Comparative Balance Sheets At December 31 Current Year Prior Year Assets Cash $ 53,800 13,400 120,100 187,300 66,500 (30,100) $ 223, 700 $ 53,900 16,400 94,800 165, 100 56,100 (20,700) $ 200,500 Accounts receivable, net Inventory Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Salaries payable $ 32,000 $ 34,400 600 800 35,200 Total current liabilities Equity Common stock, no par value Retained earnings 32,600 159,400 31,700 147,900 17,400 $ 200,500 Total liabilities and equity $ 223,700 MONTGOMERY INCORPORATED Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Salaries expense Depreciation expense Income before taxes $ 60,900 (25,300) 35,600 7,400 9,400 18,800 Income tax expense 4,500 Net income $ 14,300 Additional Information on Current-Year Transactions a. No dividends are declared or paid. b. Issued additional stock for $11,500 cash. c. Purchased equipment for cash: no equinment was sold

MONTGOMERY INCORPORATED Comparative Balance Sheets At December 31 Current Year Prior Year Assets Cash $ 53,800 13,400 120,100 187,300 66,500 (30,100) $ 223, 700 $ 53,900 16,400 94,800 165, 100 56,100 (20,700) $ 200,500 Accounts receivable, net Inventory Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Salaries payable $ 32,000 $ 34,400 600 800 35,200 Total current liabilities Equity Common stock, no par value Retained earnings 32,600 159,400 31,700 147,900 17,400 $ 200,500 Total liabilities and equity $ 223,700 MONTGOMERY INCORPORATED Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Salaries expense Depreciation expense Income before taxes $ 60,900 (25,300) 35,600 7,400 9,400 18,800 Income tax expense 4,500 Net income $ 14,300 Additional Information on Current-Year Transactions a. No dividends are declared or paid. b. Issued additional stock for $11,500 cash. c. Purchased equipment for cash: no equinment was sold

Name: MONTGOMERY INCORPORATEDComparative Balance SheetsAt December 31Assets
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Description: MONTGOMERY INCORPORATEDComparative Balance SheetsAt December 31AssetsCashCurrent Year Prior Year$ 53,80013,400120,100187,30066,500(30,100)$ 223,700$ 53,90016,40094,800165, 10056,100Accounts receivable, netInventoryTotal current assetsEquipmentAccumu

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter15: Statement Of Cash Flows

Section: Chapter Questions

Problem 2BE

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