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	$	93,000	$	67,600
Accounts receivable		634,000		665,000
Inventory		634,400		442,000
Prepaid expenses		27,600		16,000
Total current assets		1,389,000		1,190,600
Property, plant, and equipment		2,480,000		1,888,000
Less accumulated depreciation		641,400		579,800
Net property, plant, and equipment		1,838,600		1,308,200
Long-term investments		126,200		196,000
Loans to subsidiaries		142,000		81,000
Total assets	$	3,495,800	$	2,775,800
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable	$	905,200	$	592,000
Accrued liabilities		38,200		61,800
Income taxes payable		161,600		135,600
Total current liabilities		1,105,000		789,400
Bonds payable		730,000		466,000
Total liabilities		1,835,000		1,255,400
Stockholders equity:
Common stock		1,134,000		1,022,000
Retained earnings		526,800		498,400
Total stockholders equity		1,660,800		1,520,400
Total liabilities and stockholders' equity	$	3,495,800	$	2,775,800

The following additional information is available about the companys activities during this year:
a.	The company declared and paid a cash dividend this year.
b.	Bonds with a principal balance of $402,000 were repaid during this year.
c.	Equipment was sold during this year for $81,000. The equipment had cost $174,000 and had $66,400 in accumulated depreciation on the date of sale.
d.	Long-term investments were sold during the year for $154,000. These investments had cost $69,800 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			$	3,440,000
Cost of goods sold				2,132,800
Gross margin				1,307,200
Selling and administrative expenses				1,046,600
Net operating income				260,600
Nonoperating items:
Gain on sale of investments	$	84,200
Loss on sale of equipment		(26,600)		57,600
Income before taxes				318,200
Income taxes				102,000
Net income			$	216,200

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.)