MONTGOMERY INC MONTGOMERY INC

Comparative Balancesheets Income Statement

December 31 , 2019 and 2018 For year ended December 31 , 2
2019 2018 Sales
Assets Cost of goods sold
Cash 30400 30550 Gross profit
Accounts recievable , net 10050 12150 Operating Expenses
Inventory 90100 70150 Depreciation expenses
Total current assets 130550 112850 other expenses
Equipment 27400 26200 Total operating expenses
Income before taxes
Total Assets 157950 139050 Income tax expense
Liabilities and Equity Net income
Accounts payable 23900 25400
Salaries payable 500 600
Total Current liabilities 24400 26000
Equity
Common stock , no par value 110000 100000
Retained earnings 23550 13050
Total liabilities and equity 157950 139050

Additional information
a. No dividends are declared or paid in 2019
b.Issued additional stock for $10000 cash in 2019
c. Purchased equipment for cash in 2019 for Rs 8,400, no equipment was sold in 2019
 MONTGOMERY INC
Income Statement
For year ended December 31 , 2019
45575
ods sold -18950
fit 26625
Expenses
Depreciation expenses 7200
other expenses 5550
rating expenses 12750
efore taxes 13875
x expense 3375
me 10500
Cash Flows Statement of Montgomery Inc for the year 2019
Cash Flows from Operating Activities (Indirect Method) (A):
Profit after Tax or Net Income 10500
Add: Depreciation 7200

Working Capital Adjustments:

Add: Increase in CL and Decrease in CA except cash and CE:
Add: Decrease in Accounts Receivables 2100

Less: Decreae in CL and Increase in CA except cash and CE:

Less: Increase in Inventory -19950
Less: Decrease in Accounts payable -1500
Less: Decrease in salaries payable -100

Net cash inflows (outflows) from operating activities (A) -1750

Cash Flows from Investing Activities (B):
Payment for purchase of PPE -8,400

Net cash inflows (outflows) from investing activities (B) -8,400

Cash Flows from Financing Activities (C):

Issue of equity shares 10000
Divi paid 0

Net cash inflows (outflows) from Financing activities (C) 10000

Cash inflows from all the activities (A+B+C) -150
Cash and cash equivalents on 1/1/2019 30550
Cashf and cash equivalents on 31/12/2019 30,400

Note 1: Equipment
Beginning value equipment
Add: Purchases Missing figure
Less: Sale 0
Less: Depreciation
Ending value of equipment 0

Note 2: Dividend Paid 0