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 $ 100,000 $ 73,200 648,000 682,500 642,800 449,000 33,200 19,500 1,424,000 1,224,200 2,515,000 1,916,000 649,800 586, 100 1,865,200 1,329,900 140,900 217,000 149,000 84,500 $3,579,100 $2,855,600 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 $ 916,400 $ 599,000 42,400 68,100 170,700 141,200 1,129,500 808,300 765,000 487,000 1,894,500 1,295, 300 1,148,000 1,029,000 536,600 531,300 1,684,600 1,560,300 $3,579,100 $2,855,600 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 $409,000 were repaid during this year. c. Equipment was sold during this year for $84,500. The equipment had cost $188,000 and had $74,800 in accumulated depreciation on the date of sale. d. Long-term investments were sold during the year for $168,000. These investments had cost $76,100 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: $3,580,000 2,219,600 1,360, 400 1,083,700 276,700 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 Net income $ 91,900 (28,700) 63,200 339,900 109,000 230,900 $ Required: Using the indirect method, prepare a statement of cash flows for this year. (List any deduction in cash outflows as negative amounts.) Lomax Company Statement of Cash Flows Operating activities: Investing activities: Investing activities: Financing activities: Beginning cash and cash equivalents Ending cash and cash equivalents