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	$	95,000	$	69,200
Accounts receivable		638,000		670,000
Inventory		636,800		444,000
Prepaid expenses		29,200		17,000
Total current assets		1,399,000		1,200,200
Property, plant, and equipment		2,490,000		1,896,000
Less accumulated depreciation		643,800		581,600
Net property, plant, and equipment		1,846,200		1,314,400
Long-term investments		130,400		202,000
Loans to subsidiaries		144,000		82,000
Total assets	$	3,519,600	$	2,798,600
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable	$	908,400	$	594,000
Accrued liabilities		39,400		63,600
Income taxes payable		164,200		137,200
Total current liabilities		1,112,000		794,800
Bonds payable		740,000		472,000
Total liabilities		1,852,000		1,266,800
Stockholders equity:
Common stock		1,138,000		1,024,000
Retained earnings		529,600		507,800
Total stockholders equity		1,667,600		1,531,800
Total liabilities and stockholders' equity	$	3,519,600	$	2,798,600

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 $404,000 were repaid during this year.
c.	Equipment was sold during this year for $82,000. The equipment had cost $178,000 and had $68,800 in accumulated depreciation on the date of sale.
d.	Long-term investments were sold during the year for $158,000. These investments had cost $71,600 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			$	3,480,000
Cost of goods sold				2,157,600
Gross margin				1,322,400
Selling and administrative expenses				1,057,200
Net operating income				265,200
Nonoperating items:
Gain on sale of investments	$	86,400
Loss on sale of equipment		27,200		59,200
Income before taxes				324,400
Income taxes				104,000
Net income			$	220,400

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 Statements Of Cash Flows 1. Operating activities 2. 3. Adjustments to convert net income to cash basis 4. 5. 6. 7. 8. 9. 10. 11. 12 13. 14. 15. Investing activities 16. 17. 18. 19. 20. 21. 22. Financing activites 23. 24. 25. 26. 27. 28. 29. 30. Beginning Cash 31. Ending Cash