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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
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 $ 96,000 640,000 638,000 30,000 1,404,000 2,495,000 645,000 1,850,000 132,500 145,000 $ 3,531,500 $ 70,000 672,500 445,000 17,500 1,205,000 1,900,000 582,500 1,317,500 205,000 82,500 $ 2,810,000 Assets Current assets: Cash and cash equivalents Accounts receivable Inventory Prepaid expenses Total current assets otal 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 $ 910,000 40,000 165,500 1,115,500 745,000 1,860,500 $ 595,000 64,500 138,000 797,500 475,000 1,272,500 1,140,000 531,000 1,671,000 $ 3,531,500 1,025,000 512,500 1,537,500 $ 2,810,000 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 $405,000 were repaid during this year. c. Equipment was sold during this year for $82,500. The equipment had cost $180,000 and had $70,000 in accumulated depreciation a. The company declared and paid a cash dividend this year. b. Bonds with a principal balance of $405,000 were repaid during this year. C. Equipment was sold during this year for $82,500. The equipment had cost $180,000 and had $70,000 in accumulated depre on the date of sale. d. Long-term investments were sold during the year for $160,000. These investments had cost $72,500 when purchased severa 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: $ 3,500,000 2,170,000 1,330,000 1,062,500 267,500 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 $ 87,500 (27,500) 60,000 327,500 105,000 $ 222,500 Required: 1. Using the indirect method, prepare a statement of cash flows for this year. (List any deduction in cash outflows as negative amounts.) Required: 1. 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: 0 0 Investing activities: 0 Financing activities: 0 0 Investing activities: 0 Financing activities: 0 0 Beginning cash and cash equivalents Ending cash and cash equivalents $ 0
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