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 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 Metained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 101,000 $ 74,000 650,000 665,000 644,000 450,000 34,000 20,000 1,429,000 1,229.000 2,520,000 1,920,000 651,000 587.000 1,869,000 2,333,000 143,000 220.000 150,000 85,000 $3,591,000 $2,567.000 $918,000 $ 600,000 43,000 69,000 172,000 142.000 1.133,000 811,000 770,000 490,000 1.903.000 1,3011,000 2,150,000 1,030,000 538,000 536,000 1,688,000 1,565,000 $3,591,000 $2,867,000 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 $410,000 were repaid during this year. c. Equipment was sold during this year for $85,000. The equipment had cost $190,000 and had $76,000 in accumulated depreciation on the date of sale. d. Long-term investments were sold during the year for $170,000. These Investments had cost $77,000 when purchased several years 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, ago The company reported net Income this year as follows: Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating Lecome Nonoperating Items Gain on sale of investments toas on sale of equipment Indone before taxe To txea Het inooon $2,500,000 2,232,000 1,368,000 1.000.000 279.000 593.000 (29.000 303,000 110,000 5 233,000 Lomax Company Statement of Cash Flows Operating activities: 0 Investing activities: Financing activities: 0 0 Beginning cash and cash equivalents Ending cash and cash equivalents $