A comparative balance sheet for Lomax Company containing data for the last two years is as follows: Tar Company Comparative Balance Sheet Last Year Assets Current stat Cash and canh equivalenta Acecents receivable Inventory Prepaid expander Total current assets Property, plant, and equipment Loss accumulated depreciation Net property, plant, and equipment Long-term investments Loans to subsidiaries Total asuta Lai and Lockholders' quity Current liabilities: Mocounts payable Accrued liabilities Income taxes payable Total current liabilities Bonds payable Total liabilities tokholders' equity Common stock tind man 81,000 58,000 610,000 635,000 620,000 430,000 18.000 10.000 1,329,000 1,103.000 2, 420,000 1.040,000 627,000 569,000 1.793,000 1,271,000 101,000 160,000 130,000 75,000 63,353,000 $2,639,000 0086, 000 31,000 146,000 1,063,000 670,000 580,000 51,000 126,000 757,000 410,000 1,187,000 1.110,000 $10.000 1,010,000 602 00 Common stock Retained earning Total stockholders' equity Total liabilities and stockholdere quity 1,110,000 1,010,000 510,000 442,000 1.620,000 1,452,000 33,353,000 32,639.000 The following additional Information is avallable 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 $390,000 were repaid during this year. c Equipment was sold during this year for $75,000. The equipment had cost $150,000 and had $52.000 in accumulated depreciation on the date of sale. d. Long-term Investments were sold during the year for $130,000. These investments had cost $59.000 when purchased several years ago e. The subsidiaries did not repay any outstanding loans during the year. Lomax did not repurchase any of its own stock during the year. The company reported net Income this year as follows: Balen Coat of goods sold Cross margin Balling and administrative expenses Net operating income $3,200,000 1.900.000 1,216.000 983.000 233,000 The company reported net income this year as follows: $3,200,000 1.944,000 1,216,000 3,000 233,000 Balen Coat of goods sold Gross margin Dalling and administrative expenses Met operating income Honoperating its Gain on sale of investments Loss on sale of equipment Income before taxes Incon LAKS Net Income # 71.000 125,000) 40,000 281.000 90,000 191,000 + Required: Using the Indirect method, prepare a statement of cash flows for this year. (List any deduction in cash outflows us negative amounts.) Answer is not complete. La Company Batmantel Cellow $191,000 Operating activiti Not incorne Adjustments to convert gross margin to a cash basis: Depreciation Increase in inventory Increase in accounts payable beroane in income ince payable Decrease in scried liabilities Decrease in accounts receivable Addition to property, plant, and equipment (190,000) 205,000 20,000 20,000 25,000 o 181,000 372.000 Investing activities 32.000 Investing activities: Gain on sale of inventments Decrease in accounts receivable Canh dividenda paid ololo 0 Financing active Additions to property, plant, and equipment Decrease in accounts payable 372.000 Check 3 A comparative balance sheet for Lomax Company containing data for the last two years is as folows: La Company Comparative lance thout This Team Let Year Rent Current se cash and cash equivalents Meest receivable Inventory Prepaid expenses Total current ante Property, plant, and equipment Les slated depreciation Het property, plant, ad qipant Long-term invest tane to Rubellari Total area Liabilities and stockholdere takty Current liabilities Mette payable hered abilities Income tax payahle Total Tent Lalities Bonds payable Total abilities hority an alanlar . 01.000 6 50,000 610.000 15.000 620.000 430,000 18,000 10,000 1,229.000 1.133.000 2.420,000 1.440,000 621.000 369.000 1,293,000 1,271,000 101,000 160.000 110.000 75.000 3.35).000 11.09,000 85,000 50,000 31.000 $1,000 145,000 120.000 1.013,000 157,000 620,000 1.110,000 200 1.19.000 40.000 12:233,00 13.00