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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 Accounts receivable Inventory Prepaid expenses $ 82,000 $ 58,800 612.000 621,200 18,800 637,500 431,000 10,500 1,334,000 1,137,800 Total current assets 2,425,000 1,844,000 Property, plant, and equipment 569,900 628,200 Less accumulated depreciation 1,796,800 1,274,100 Net property, plant, and equipment 163,000 103,100 Long-term investments 75,500 131,000 Loans to subsidiaries 3 364 900.2650.400 Total assets Next> 4 of 8 Prev 3.364,900 2,650,400 Total assets $ Liabilities and Stockholders' Equity Current liabilities Accounts payable Accrued liabilities Income taxes payable 887,600 $ 581,000 31,600 147,300 51,900 126,800 1,066,500 759,700 Total current liabilities Bonds payable 433,000 675,000 Total liabilities 1,741,500 1,192,700 Stockholders' equity: Common stock Retained earnings 1,112,000 511,400 1,011,000 446,700 1,623,400 1,457,700 Total stockholders' equity 3,364,9002,650,400 Total liabilities and stockholders' equity $ The following additional information is available about the company's activities during Next 4 of 8 Drov 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 $391,000 were repaid during this year Equipment and had $53,200 in accumulated depreciation on the date of sale. d. Long-term investments were sold during the year for $132,000. These investments had cost $59,900 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. was sold during this year for $75,500. The equipment had cost $152,000 C. The company reported net income this year as follows: Sales $3,220,000 1,996,400 Cost of goods sold Gross margin Selling and administrative 1,223,600 expenses 988,300 Net operating income Nonoperating items: Gain on sale of investments Loss on sale of equipment 235,300 $72,100 23,300 48,800 Income before taxes Income taxes 284,100 91.000 Income taxes 91,000 Net income $ 193,100 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.) Lomax Company Statement of Cash Flows Operating activities: Adjustments to convert net income to cash basis: Investing activities: Financing activities: 0 Beginning cash and cash equivalents Ending cash and cash equivalents 0
