A comparative balance sheet for Lomax Company containing data for the last two years is as follows:

A comparative balance sheet for Lomax Company containing data for the last two years is as follows: Lomax Company Comparative Balance Sheet This Last Year Year Assets Current assets: Cash and cash equivalents $ 85,000 $ 61,200 Accounts receivable 618,000 645,000 Inventory 624,800 434,000 Prepaid expenses 21,200 12,000 Total current assets 1,349,000 1,152,200 2,440,000 1,856,000 Property, plant, and equipment Less accumulated depreciation 631,800 572,600 Net property, plant, and equipment 1,808,200 1,283,400 Long-term investments 109,400 172,000 Loans to subsidiaries 134,000 77,000 Total assets $3,400,600 $2,684,600 Liabilities and Stockholders' Equity Current liabilities Accounts payable Accrued liabilities Income taxes payable $ 892,400 $ 584,000 33,400 54,600 151,200 129,200 1,077,000 Total current liabilities Bonds payable 767,800 442,000 690,000 Total liabilities 1,767,000 1,209,800 Stockholders' equity: Common stock Retained earnings 1,014,000 1,118,000 515,600 460,800 1,633,600 1,474,800 Total stockholders' equity Total liabilities and stockholders' equity $3,400,600$ $2,684,600 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 $394,000 were repaid during this year. c. Equipment was sold during this year for $77,000. The equipment had cost $158,000 and had $56,800 in accumulated depreciation on the date of sale. d. Long-term investments were sold during the year for $138,000. These investments had cost $62,600 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 Cost of goods sold $3,280,000 2,033,600 1,246,400 Gross margin Selling and administrative expenses 1,004,200 242,200 Net operating income Nonoperating items: Gain on sale of investments Loss on sale of equipment $ 75,400 24,200 51,200 Income before taxes Income taxes 293,400 94,000 Net income $ 199,400 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: Investing activities: 0 Financing activities: Financing activities: 0 0 Beginning cash and cash equivalents Ending cash and cash equivalents $ 0