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 $ 99,000 $ 72,400 646,000 680,000 641,600 448,000 32,400 19,000 1,419,000 1,219,400 2,510,000 1,912,000 648,600 585,200 1,861,400 1,326,800 138,800 214,000 148,000 84,000 $3,567,200 $2,844,200 Assets Current assets: Cash and cash equivalents 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 $ 914,800 $ 598,000 41,800 67,200 169,400 140,400 1,126,000 805,600 760,000 484,000 1,886,000 1,289,600 1,146,000 1,028,000 535,200 526,600 1,681,200 1,554,600 $3,567,200 $2,844,200 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 $408,000 were repaid during this year. c. Equipment was sold during this year for $84,000. The equipment had cost $186,000 and had $73,600 in accumulated depreciation on the date of sale. d. Long-term investments were sold during the year for $166,000. These investments had cost $75,200 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: $ 3,560,000 2,207,200 1,352,800 1,078,400 274,400 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 $ 90,800 (28,400) 62,400 336,800 108,000 228,800 $ 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