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A comparative balance sheet for Lomax Company containing data for the last two years is as follows: This Year Last Year Lomax Company Comparative Balance

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A comparative balance sheet for Lomax Company containing data for the last two years is as follows: This Year Last Year Lomax Company Comparative Balance Sheet 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 $ 75,000 $ 53,200 598,000 620,000 612,800 424,000 13,200 7,000 1,299,000 1,104,200 2,390,000 1,816,000 619,800 563, 600 1,770,200 1,252,400 88,400 142,000 124,000 72,000 $3,281,600 $2,570, 600 $ 876,400 $ 574,000 27,400 45,600 138,200 121,200 1,042,000 740,800 640,000 412,000 1,682,000 1, 152,800 1,098,000 1,004,000 501,600 413,800 1,599,600 1,417,800 $3,281,600 $2,570,600 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 $384,000 were repaid during this year c. Equipment was sold during this year for $72,000. The equipment had cost $138,000 and hod $44,800 in accumulated depreciation on the date of sale, d. Long-term investments were sold during the year for $118,000. These investments had cost $53,600 when purchased several years ago e. The subsidiaries did not repay any outstanding loans during the year. 1. Lomax did not repurchase any of its own stock during the year, The company reported net income this year as follows: $3,000,000 1,902,600 1, 170,400 951,200 219,200 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 Incone before taxes Income taxes Net Income $ 64,400 (21,200) 43,200 262,400 84,000 $ 178,400 Required: Using the indirect method, prepare a statement of cash flows for this year. (List any deduction in cash outflows as negative amounts.) 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 0 0 Investing activities: 0 0 Investing activities: Financing activities: 0 0 Beginning cash and cash equivalents Ending cash and cash equivalents $

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