Problem 13-14 (Algo) Prepare and Interpret a Statement of Cash Flows [LO13-1, LO13-2] 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 $ 81,000 $ 58,000 Accounts receivable 610,000 635,000 Inventory 620,000 430,000 Prepaid expenses 18,000 10,000 Total current assets 1,329,000 1,133,000 Property, plant, and equipment 2, 420,000 1,840,000 Less accumulated depreciation 627,000 569,000 Net property, plant, and equipment 1,793,000 1,271,000 Long-term investments 101,000 160,000 Loans to subsidiaries 130,000 75,000 Total assets $ 3,353,000 $ 2,639,000 Liabilities and stockholders' Equity Current liabilities: Accounts payable $ 886,000 $ 580,000 Accrued liabilities 31,000 51,000 Income taxes payable 146,000 Total current liabilities 126,000 1,063,000 757,000 Bonds payable 670,000 430,000 Total liabilities 1,733,000 Stockholders equity 1,187,000 Common stock Retained earnings 1,110,000 1,010,000 Total stockholders' equity 510,000 442,000 1,620,000 1.452.000 Total liabilities and stockholders' equity $ 3,353,000 $ 2,639,000 es The following additional information is available about the company's activities during this year: a. The company declared and peld 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 1. Lomax did not repurchase any of its own stock during the year. The company reported net income this year as follows: $ 3,200,000 1,204.000 1,216,000 903,000 233,000 Sales Cost of goods sola Gros margin telling and sonstrative expennen Net operating in Wonoperating item Gal on sale of investments Los on sale of equipment I tvene bore sa TWO LA olino $ 71,000 23.000 40.000 201,000 50.000 191.000 Required: Using the indirect method, prepare a statement of cash flows for this year. (List any deduction in cash outflows as negative amounts) Required: 1. Using the indirect method, prepare a statement of cash flows for this year. (List any deduction in cash outflow amounts.) Lomax Company Statement of Cash Flows Operating activities: 0 0 Investing activities: 0 Financing activities 0 Investing activities: 0 Financing activities: 0 0 Beginning cash and cash equivalents Ending cash and cash equivalents 0