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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

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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 77,000 $ 54,800 Accounts receivable 602,000 625,000 Inventory Prepaid expenses Total current assets 615,200 14,800 426,000 , 00 1,113,800 1,824,000 565,400 1,258,600 148,000 73,000 $3,305,400 $2,593,400 1,309,000 Property, plant, and equipment Less accumulated depreciation 2,400,000 es 622,200 1,777,800 Net property, plant, and equipment Long-term investments Loans to subsidiaries 92,600 126,000 Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable 24 879,600 $ 28,600 576,000 Accrued liabilities 47,400 Income taxes payable Total current liabilities 140,800 122,800 1,049,000 746,200 418,000 Bonds payable 650,000 Total liabilities 1,699,000 1,164,200 Stockholders' equity: Common stock 1,102,000 1,006,000 Retained earnings Total stockholders' equity 504,400 423,200 1,429,200 1,606,400 Total liabilities and stockholders' equity $3,305,400 $2,593,400 The following additional information is available about the company's activities during this year: 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 $386,000 were repaid during this year. c. Equipment was sold during this year for $73,000. The equipment had cost $142,000 and had $47,200 in accumulated depreciation on the date of sale. d. Long-term investments were sold during the year for $122,000. These investments had cost $55,400 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: Sales $3,120,000 Cost of goods sold 1,934,400 1,185,600 Gross margin Selling and administrative expenses Net operating income Nonoperating items: Gain on sale of investments Loss on sale of equipment 961,800 223,800 $ 66,600 (21,800) 44,800 Income before taxes 268,600 Income taxes 86,000 Net income 182,600 Required: Using the Indirect method, prepare a statement of cash flows for this year. (List any deduction in cash outflows as n- Lomax Company Statement of Cash Flows Operating activities: Investing activities: Financing activities: Beginning cash and cash equivalents Ending cash and cash equivalents

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