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 equivalents	$	91,000	$	66,000
Accounts receivable		630,000		660,000
Inventory		632,000		440,000
Prepaid expenses		26,000		15,000
Total current assets		1,379,000		1,181,000
Property, plant, and equipment		2,470,000		1,880,000
Less accumulated depreciation		639,000		578,000
Net property, plant, and equipment		1,831,000		1,302,000
Long-term investments		122,000		190,000
Loans to subsidiaries		140,000		80,000
Total assets	$	3,472,000	$	2,753,000
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable	$	902,000	$	590,000
Accrued liabilities		37,000		60,000
Income taxes payable		159,000		134,000
Total current liabilities		1,098,000		784,000
Bonds payable		720,000		460,000
Total liabilities		1,818,000		1,244,000
Stockholders equity:
Common stock		1,130,000		1,020,000
Retained earnings		524,000		489,000
Total stockholders equity		1,654,000		1,509,000
Total liabilities and stockholders' equity	$	3,472,000	$	2,753,000

The following additional information is available about the companys activities during this year:
a.	The company declared and paid a cash dividend this year.
b.	Bonds with a principal balance of $400,000 were repaid during this year.
c.	Equipment was sold during this year for $80,000. The equipment had cost $170,000 and had $64,000 in accumulated depreciation on the date of sale.
d.	Long-term investments were sold during the year for $150,000. These investments had cost $68,000 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			$	3,400,000
Cost of goods sold				2,108,000
Gross margin				1,292,000
Selling and administrative expenses				1,036,000
Net operating income				256,000
Nonoperating items:
Gain on sale of investments	$	82,000
Loss on sale of equipment		26,000		56,000
Income before taxes				312,000
Income taxes				100,000
Net income			$	212,000

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.)