Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
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 $ 93,000 $ 67,600 634,000 665,000 634,400 442,000 27,600 16,000 1,389,000 1,190,600 2,480,000 1,888,000 641,400 579,800 1,838,600 1,308,200 126,200 196,000 142,000 81,000 $3,495,800 $2,775,800 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 $ 905,200 $ 592,000 38,200 61,800 161,600 135,600 1,105,000 789,400 730,000 466,000 1,835,000 1,255,400 1,134,000 1,022,000 526,800 498,400 1,660,800 1,520,400 $3,495,800 $2,775,800 The following additional information is available about the company's activities during this year: 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 $402,000 were repaid during this year, c. Equipment was sold during this year for $81,000. The equipment had cost $174,000 and had $66,400 in accumulated depreciation on the date of sale d. Long-term investments were sold during the year for $154,000. These investments had cost $69,800 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: $ 3,440,000 2,132,800 1,307,200 1,046,600 260,600 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 $ 84,200 (26,680) 57,600 318,200 102,000 216,200 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting A Systems Approach

Authors: Alison Warman, Jeff Davies

1st Edition

1861520379, 978-1861520371

More Books

Students also viewed these Accounting questions

Question

OUTCOME 6 Explain and give examples of diversity management.

Answered: 1 week ago