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 $ 99,000 $ 72,400 equivalents Accounts 646,000 receivable 680,000 Inventory 641,600 448,000 Prepaid 32,400 19,000 expenses Total current 1,419,000 1,219,400 assets Property plant, and 2,510,000 1,912,000 equipment Less accumulated 648,600 585,200 depreciation Net property, plant, and 1,861,400 1,326,800 equipment Long-term 138,800 investments 214,000 Loans to 148,000 84,000 subsidiaries Total assets $3,567,200 $ 2,844,200 Liabilities and Stockholders' Equity Current liabilities Accounts $ 914,800 $ 598,000 payable Accrued 41,800 67,200 liabilities Income taxes 169,400 140,400 payable Total current 1,126,000 805, 600 liabilities Bonds payable 760,000 484,000 Total 1,886,000 1,289,600 liabilities Stockholders' equity: Common stock 1,146,000 1,028,000 Retained 535,200 526,600 earnings Total stockholders' 1,681,200 1,554,600 equity Total liabilities and $3,567,200 $2,844,200 stockholders' equity 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. .. 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. 1. Long-term investments were sold during the year for $166,000. These investments had cost $75,200 when purchased several years ago. 2. 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 $ 90,800 investments Loss on sale (28,400) of equipment Income before taxes Income taxes Net income 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
