8 A comparative balance sheet for Lomax Company containing data for the last two years is as follows: oints Lomax Company Comparative Balance Sheet This Last Year Year Assets Current assets: Cash and cash equivalents $ 81,000 $ 58,000 Accounts receivable 610,000 635,000 Inventory 620,000 430,000 Prepaid expenses 18,000 10,000 eBook Print Total current assets 1,329,000 1,133,000 References 2,420,000 1,840,000 Property, plant, and equipment Less accumulated depreciation 627,000 569,000 Net property, plant, and equipment 1.793,000 1,271,000 Long-term investments 101,000 160,000 Loans to subsidiaries 130,000 75,000 Total assets $3,353,000 $2,639,000 Liabilities and Stockholders' Equity Current liabilities Accounts payable Accrued liabilities Income taxes payable $ 886,000 $ 580,000 31,000 51,000 146,000 126,000 Total current liabilities 1,063.000 H. 14 - STATEMENT OF CASH FLOWS Saved UUU -$-$ 8 Liabilities and Stockholders' Equity Current liabilities Accounts payable Accrued liabilities Income taxes payable $ 886,000 $ 580,000 31,000 51,000 146,000 126,000 2 points 1,063,000 Total current liabilities Bonds payable 757,000 430,000 670,000 eBook Total liabilities 1,733,000 1,187,000 Print Stockholders' equity: Common stock Retained earnings 1,010,000 References 1.110,000 510,000 442,000 Total stockholders' equity 1.620,000 1,452,000 Total liabilities and stockholders' equity $3,353,000 $2,639,000 The following additional information is available about the company's activities during this year a. The company declared and paid a cash dividend this year. b. Bonds with a principal balance of $390,000 were repaid during this year. c. Equipment was sold during this year for $75,000. The equipment had cost $150,000 and had $52,000 in accumulated depreciation on the date of sale. d. Long-term investments were sold during the year for $130,000. These investments had cost $59,000 when purchased several years ago e. The subsidiaries did not repay any outstanding loans during the year. 1. Lomax did not repurchase any of its own stock during the year. The company reported net income this year as follows: C. THE JUUNICO IU TOC repay any uwarury runs wurwy wie ycur. f. Lomax did not repurchase any of its own stock during the year. 8 The company reported net income this year as follows: Sales Cost of goods sold $3,200,000 1,984,000 2 points 1,216,000 Gross margin Selling and administrative expenses 983,000 eBook 233,000 Net operating income Nonoperating items: Gain on sale of investments Loss on sale of equipment Print $ 71,000 23,000 48,000 References Income before taxes Income taxes 281,000 90,000 Net income $ 191,000 Required: 1. Using the indirect method, prepare a statement of cash flows for this year. (List any deduction in cash and cash outflows as negative amounts.) Lomax Company Statement of Cash Flows Operating activities Adjustments to convert net income to cash basis: Statement of Cash Flows Operating activities: 8 Adjustments to convert net income to cash basis: Doints eBook Print References Investing activities: Financing activities: Beginning cash and cash equivalents Ending cash and cash equivalents