9 A comparative balance sheet for Lomax Company containing data for the last two years is as follows: Lomax Company 2 ts Assets Comparative Balance Sheet This Year Last Year Current assets: Cash and cash equivalents $ 86,000 620,000 $ 62,000 647,500 435,000 12,500 eBook: Accounts receivable Inventory Prepaid expenses Total current assets. Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Long-term investments Loans to subsidiaries Total assets. Liabilities and Stockholders' Equity Current liabilities Accounts payable Accrued liabilities Income taxes payable Total current liabilities Bonds payable Total liabilities Stockholders' equity: Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 626,000 22,000 1,354,000 1,157,000 2,445,000 633,000 1,812,000 111,500 135,000 $ 3,412,500 1,860,000 573,500 1,286,500 175,000 77,500 $ 2,696,000 $ 894,000 34,000 152,500 1,080,500 $ 585,000 55,500 130,000 770,500 695,000 445,000 1,775,500 1,215,500 1,120,000 517,000 1,637,000 $ 3,412,500 1,015,000 465,500 1,480,500 $ 2,696,000 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 $395,000 were repaid during this year. c. Equipment was sold during this year for $77,500. The equipment had cost $160,000 and had $58,000 in accumulated depreciation on the date of sale. d. Long-term investments were sold during the year for $140,000. These investments had cost $63,500 when purchased several years ago. e. The subsidiaries did not repay any outstanding loans during the year. f. Lomax did not repurchase any of its own stock during the year. J ok The company reported net income this year as follows: Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items: Gain on sale of investments Loss on sale of equipment Income before taxes Income taxes Net income Required: $ 76,500 (24,500) $ 3,300,000 2,046,000 1,254,000 1,009,500 244,500 52,000 296,500 95,000 $ 201,500 Using the indirect method, prepare a statement of cash flows for this year. (List any deduction in cash outflows as negative amounts.) Check 9 Required: Using the indirect method, prepare a statement of cash flows for this year. (List any deduction in cash outflows as negative amounts.) 3.12 points Lomax Company Statement of Cash Flows Operating activities: eBook Investing activities: Financing activities: Beginning cash and cash equivalents Ending cash and cash equivalents 0 0 $ 0 0