Lomax Company Comparative Balance Sheet This Year Last Year $ 81,000 $ 58,000 610,000 635,000 620,000 430,000 18,000 10,000 1,329,000 1,133,000 2,420,000 1,840,000 627,000 569,000 1,793,000 1,271,000 101,000 160,000 130,000 75,000 $3,353,000 $2,639,000 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 liabilities Bonds payable Total liabilities Stockholders' equity: Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 886,000 $ 580,000 31,000 51,000 146,000 126,000 1,063,000 757,000 670,000 430,000 1,733,000 1,187,000 1,110,000 1,010,000 510,000 442,000 1,620,000 1, 452,000 $3,353,000 $2,639,000 The following additional information is available about the company's activities during this year: a. The company declared and paid a cash dividend this year. b. Bonds with a principal balance of $390,000 were repaid during this year. c. Equipment was sold during this year for $75,000. The equipment had cost $150,000 and had $52,000 in accumulated depreciation on the date of sale. d. Long-term investments were sold during the year for $130,000. These investments had cost $59,000 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: $3,200,000 1,984,000 1,216,000 983,000 233,000 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 taxes $ 71,000 (23,000) 48,000 281,000 90,000 191,000 Net income $ Lomax Company Statement of Cash Flows Operating activities: Investing activities: Financing activities: Beginning cash and cash equivalents Ending cash and cash equivalents