A comparative balance sheet for Lomax Company containing data for the last two years is as follows: Lomax Company Comparative Balance Sheet This Year Last Year Assets Current assets: Cash and cash equivalents Accounts receivable Inventory Prepaid expenses Total current assets 94,000 $ 636,000 635,600 28,400 1,394,000 2,485,000 642,600 1,842,400 128,300 143,000 $3,507,700 $2,787,200 68,400 667,500 443,000 16,500 1,195,400 1,892,000 580,700 1,311,300 199,000 81,500 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 906,800 $ 38,800 162,900 1,108,500 735,000 1,843,500 593,000 62,700 136,400 792,100 469,000 1,261,100 Total liabilities Stockholders' equity: Common stock Retained earnings Total stockholders' equity 1,023,000 503,100 1,526,100 1,136,000 528,200 1,664,200 Total liabilities and stockholders' equity $3,507,700 $2,787,200 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 $403,000 were repaid during this year. c. Equipment was sold during this year for $81,500. The equipment had cost $176,000 and had $67,600 in accumulated depreciation on the date of sale. d. Long-term investments were sold during the year for $156,000. These investments had cost $70,700 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. The company reported net income this year as follows: $ 3,460,000 2,145,200 1,314,800 1,051,900 262,900 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items: Gain on sale of investments $ 85,300 (26,900) Loss on sale of equipment 58,400 321,300 103,000 Income before taxes Income taxes 218,300 Net income Required: Using the indirect method, prepare a statement of cash flows for this year. (List any deduction in cash outflows as negative amounts.) Lomax Company Statement of Cash Flows Operating activities: Investing activities: Financing activities: Beginning cash and cash equivalents Ending cash and cash equivalents