A comparative balance sheet for Lomax Company containing data for the last two years is as follows:

Lomax Company Comparative Balance Sheet This Last Year Year Assets Current assets: Cash and cash equivalents $ 72,000 $ 50.800 Accounts receivable 592,000 612,500 Inventory 609,200 421,000 Prepaid expenses 10,800 5,500 1,284,000 1,089,800 Total current assets 2,375,000 1,804,000 Property, plant, and equipment Less accumulated depreciation 616,200 560,900 Net property, plant, and equipment 1,758,800 1.243,100 Long-term Investments Loans to subsidiaries 82,100 133,000 121,000 70,500 $3,245,90092,536,400 Total assets Llabilities and Stockholders' Equity Current liabilities Accounts payable Accrued liabilitles Income taxes payable $ 871,600 $ 571,000 25,600 42,900 134,300 118,800 Total current liabilities Bonds payable 1,031,500 625,000 732,700 403,000 Total liabilities 1,656,500 1,135,700 Stockholders' equity: Common stock Retained earnings 1,092,000 1,001,000 497,400 399,700 1,589,400 1,400,700 Total stockholders' equity Total liabilities and stockholders' equity $3,245,900 2,536,400 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 $381,000 were repald during this year. c. Equipment was sold during this year for $70,500. The equipment had cost $132,000 and had $41,200 in accumulated depreciation on the date of sale. d. Long-term Investments were sold during the year for $112,000. These investments had cost $50.900 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 Cost of goods sold $3,020,000 1,872,400 1,147,600 Gross margin Selling and administrative expenses 935,300 212,300 Net operating Income Nonoperating items: Gain on sale of Investments Loss on sale of equipment $ 61,100 20,300 40,800 Income before taxes Income taxes 253,100 81,000 Net Income $ 172100 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.) Lomax Company Statement of Cash Flows Operating activities: Adjustments to convert net income to cash basis Investing activities: Financing activities: Beginning cash and cash equivalents Ending cash and cash equivalents