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

$

61,000

$

40,000

Accounts receivable

710,000

530,000

Inventory

848,000

860,000

Prepaid expenses

10,000

5,000

Total current assets

1,629,000

1,435,000

Property, plant, and equipment

3,170,000

2,600,000

Less accumulated depreciation

810,000

755,000

Net property, plant, and equipment

2,360,000

1,845,000

Long-term investments

60,000

110,000

Loans to subsidiaries

214,000

170,000

Total assets

$

4,263,000

$

3,560,000

Liabilities and Stockholders' Equity

Current liabilities

Accounts payable

$

970,000

$

670,000

Accrued liabilities

65,000

82,000

Income taxes payable

95,000

80,000

Total current liabilities

1,130,000

832,000

Bonds payable

820,000

600,000

Total liabilities

1,950,000

1,432,000

Stockholders equity:

Common stock

1,740,000

1,650,000

Retained earnings

573,000

478,000

Total stockholders equity

2,313,000

2,128,000

Total liabilities and stockholders' equity

$

4,263,000

$

3,560,000

Answer is not complete

Lomax Company
Statement of Cash Flows
Operating activities:
Net income		$170,000
Adjustments to convert net income to cash basis:
Depreciation	$95,000
Gain on sale of investments	(60,000)
Loss on sale of equipment	20,000
Increase in accounts receivable	(180,000)
Decrease in inventory	12,000
Increase in prepaid expenses	(5,000)
Increase in accounts payable	300,000
Decrease in accrued liabilities	(17,000)
Increase in income taxes payable	15,000
		180,000
Net cash provided by operating activities		350,000
Investing activities:
Loan to subsidiaries	(44,000)
Proceeds from sale of long-term investments	110,000
Additions to plant and equipment	(700,000)
	70,000
Net cash used in investing activities		(564,000)
Financing activities:
Cash dividends to stockholders
	(350,000)
	90,000
Net cash provided by financing activities		(260,000)
Net increase in cash and cash equivalents		(474,000)
Beginning cash and cash equivalents		40,000
Ending cash and cash equivalents		$(434,000)