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	$	83,000	$	59,600
Accounts receivable		614,000		640,000
Inventory		622,400		432,000
Prepaid expenses		19,600		11,000
Total current assets		1,339,000		1,142,600
Property, plant, and equipment		2,430,000		1,848,000
Less accumulated depreciation		629,400		570,800
Net property, plant, and equipment		1,800,600		1,277,200
Long-term investments		105,200		166,000
Loans to subsidiaries		132,000		76,000
Total assets	$	3,376,800	$	2,661,800
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable	$	889,200	$	582,000
Accrued liabilities		32,200		52,800
Income taxes payable		148,600		127,600
Total current liabilities		1,070,000		762,400
Bonds payable		680,000		436,000
Total liabilities		1,750,000		1,198,400
Stockholders equity:
Common stock		1,114,000		1,012,000
Retained earnings		512,800		451,400
Total stockholders equity		1,626,800		1,463,400
Total liabilities and stockholders' equity	$	3,376,800	$	2,661,800

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 $392,000 were repaid during this year.
c.	Equipment was sold during this year for $76,000. The equipment had cost $154,000 and had $54,400 in accumulated depreciation on the date of sale.
d.	Long-term investments were sold during the year for $134,000. These investments had cost $60,800 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			$	3,240,000
Cost of goods sold				2,008,800
Gross margin				1,231,200
Selling and administrative expenses				993,600
Net operating income				237,600
Nonoperating items:
Gain on sale of investments	$	73,200
Loss on sale of equipment		23,600		49,600
Income before taxes				287,200
Income taxes				92,000
Net income			$	195,200

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.)