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	$	89,000	$	64,400
Accounts receivable		626,000		655,000
Inventory		629,600		438,000
Prepaid expenses		24,400		14,000
Total current assets		1,369,000		1,171,400
Property, plant, and equipment		2,460,000		1,872,000
Less accumulated depreciation		636,600		576,200
Net property, plant, and equipment		1,823,400		1,295,800
Long-term investments		117,800		184,000
Loans to subsidiaries		138,000		79,000
Total assets	$	3,448,200	$	2,730,200
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable	$	898,800	$	588,000
Accrued liabilities		35,800		58,200
Income taxes payable		156,400		132,400
Total current liabilities		1,091,000		778,600
Bonds payable		710,000		454,000
Total liabilities		1,801,000		1,232,600
Stockholders equity:
Common stock		1,126,000		1,018,000
Retained earnings		521,200		479,600
Total stockholders equity		1,647,200		1,497,600
Total liabilities and stockholders' equity	$	3,448,200	$	2,730,200

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 $398,000 were repaid during this year.
c.	Equipment was sold during this year for $79,000. The equipment had cost $166,000 and had $61,600 in accumulated depreciation on the date of sale.
d.	Long-term investments were sold during the year for $146,000. These investments had cost $66,200 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			$	3,360,000
Cost of goods sold				2,083,200
Gross margin				1,276,800
Selling and administrative expenses				1,025,400
Net operating income				251,400
Nonoperating items:
Gain on sale of investments	$	79,800
Loss on sale of equipment		(25,400)		54,400
Income before taxes				305,800
Income taxes				98,000
Net income			$	207,800

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.)