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 abilities tonds payable Total liabilities stockholders' equity Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 78,000 $ 55,600 604,000 627,500 616,400 427,000 15,600 8,500 1,314,000 1,118,600 2,405,000 1,828,000 623,400 566,300 1,781,600 1,261,700 94,700 151,000 127.000 73,500 $3,317,300 $2,604,800 $ 891,200 $ 577,000 29,200 48,300 142,100 123,600 1,052,500 748.900 655,000 421,000 1.707,500 1.169.900 1,104.000 1.007.000 505,000 427,900 1.609,800 1,434,900 53,317,300 $2,600,00 The following additional information is available about the company's activities during this year a. The company declared and paid a cosh dividend this year. b. Bonds with a principal balance of $387,000 were repaid during this year, c. Equipment was sold during this year for $73,500. The equipment had cost $144,000 and had $48,400 in accumulated depreciation on the date of sale d. Long-term investments were sold during the year for $124.000. These investments had cost $56,300 when purchased several years ago a. The company declared and paid a cash dividend this year. b. Bonds with a principal balance of $387,000 were repaid during this year. c. Equipment was sold during this year for $73,500. The equipment had cost $144,000 and had $48,400 in accumulated depreciation on the date of sale. d. Long-term investments were sold during the year for $124,000. These investments had cost $56,300 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 Gross margin Selling and administrative expenses Net operating income Nonoperating Items Gain on sale of investments Loss on sale of equipment Income before taxes Income taxea Net Income $3,140,000 1,946,800 1,193,200 967,100 226,100 5.57.700 (22.100) 45,600 271,700 02.000 $184,700 Required: Using the Indirect method, prepare a statement of cash flows for this year, (List any deduction in cash outflows as negative amounts.) $ 184,700 Lomax Company Statement of Cash Flows Operating activities Net income Adjustments to convert not income to a cash basin Depreciation Gain on sale of investments Loss on sale of equipment Decrease in accounts receivable Increase in inventory Increase in opad enne (67.700) 22.100 $ 184,700 Operating activities: Net Income Adjustments to convert net income to a cash basis: Depreciation Gain on sale of investments Loss on sale of equipment Decrease in accounts receivable Increase in inventory Increase in prepaid expenses Increase in accounts payable Decrease in accrued liabilities Increase in income taxes payable (67.700) 22,100 (45,600) 139.100 Net cash provided by operating activities Investing activities: Proceeds from sale of equipment Additions to property, plant and equipment (Proceeds from sale of long-term investments F 0 Financing activities issuance of common stock Issuance of bonds payable Retirement of bonds payable Cash dividends paid 0 Net cash provided by financing activities Net increase in cash and cash equivalents Beginning cash and cash equivalents Ending cash and cash equivalents 139, 100 $ 139,100 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 abilities tonds payable Total liabilities stockholders' equity Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 78,000 $ 55,600 604,000 627,500 616,400 427,000 15,600 8,500 1,314,000 1,118,600 2,405,000 1,828,000 623,400 566,300 1,781,600 1,261,700 94,700 151,000 127.000 73,500 $3,317,300 $2,604,800 $ 891,200 $ 577,000 29,200 48,300 142,100 123,600 1,052,500 748.900 655,000 421,000 1.707,500 1.169.900 1,104.000 1.007.000 505,000 427,900 1.609,800 1,434,900 53,317,300 $2,600,00 The following additional information is available about the company's activities during this year a. The company declared and paid a cosh dividend this year. b. Bonds with a principal balance of $387,000 were repaid during this year, c. Equipment was sold during this year for $73,500. The equipment had cost $144,000 and had $48,400 in accumulated depreciation on the date of sale d. Long-term investments were sold during the year for $124.000. These investments had cost $56,300 when purchased several years ago a. The company declared and paid a cash dividend this year. b. Bonds with a principal balance of $387,000 were repaid during this year. c. Equipment was sold during this year for $73,500. The equipment had cost $144,000 and had $48,400 in accumulated depreciation on the date of sale. d. Long-term investments were sold during the year for $124,000. These investments had cost $56,300 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 Gross margin Selling and administrative expenses Net operating income Nonoperating Items Gain on sale of investments Loss on sale of equipment Income before taxes Income taxea Net Income $3,140,000 1,946,800 1,193,200 967,100 226,100 5.57.700 (22.100) 45,600 271,700 02.000 $184,700 Required: Using the Indirect method, prepare a statement of cash flows for this year, (List any deduction in cash outflows as negative amounts.) $ 184,700 Lomax Company Statement of Cash Flows Operating activities Net income Adjustments to convert not income to a cash basin Depreciation Gain on sale of investments Loss on sale of equipment Decrease in accounts receivable Increase in inventory Increase in opad enne (67.700) 22.100 $ 184,700 Operating activities: Net Income Adjustments to convert net income to a cash basis: Depreciation Gain on sale of investments Loss on sale of equipment Decrease in accounts receivable Increase in inventory Increase in prepaid expenses Increase in accounts payable Decrease in accrued liabilities Increase in income taxes payable (67.700) 22,100 (45,600) 139.100 Net cash provided by operating activities Investing activities: Proceeds from sale of equipment Additions to property, plant and equipment (Proceeds from sale of long-term investments F 0 Financing activities issuance of common stock Issuance of bonds payable Retirement of bonds payable Cash dividends paid 0 Net cash provided by financing activities Net increase in cash and cash equivalents Beginning cash and cash equivalents Ending cash and cash equivalents 139, 100 $ 139,100