Question

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 Total current assets 94,000 $ 636,000 635,600 28,400 1,394,000 2,485,000 642,600 1,842,400 128,300 143,000 $3,507,700 $2,787,200 68,400 667,500 443,000 16,500 1,195,400 1,892,000 580,700 1,311,300 199,000 81,500 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 906,800 $ 38,800 162,900 1,108,500 735,000 1,843,500 593,000 62,700 136,400 792,100 469,000 1,261,100 Total liabilities Stockholders' equity: Common stock Retained earnings Total stockholders' equity 1,023,000 503,100 1,526,100 1,136,000 528,200 1,664,200 Total liabilities and stockholders' equity $3,507,700 $2,787,200 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 $403,000 were repaid during this year. c. Equipment was sold during this year for $81,500. The equipment had cost $176,000 and had $67,600 in accumulated depreciation on the date of sale. d. Long-term investments were sold during the year for $156,000. These investments had cost $70,700 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.

Answer 1

Lomax Company
Statement of Cash Flows
Operating Activities:
Net Income	$2,18,300
"+/- Changes in Working capital:
Accounts Receivable	$31,500		=667500-636000
Inventory	-$1,92,600		=443000-635600
Prepaid Expenses	-$11,900		=16500-28400
Accounts Payable	$3,13,800		=906800-593000
Accrued Liabilities	-$23,900		=38800-62700
Income Tax Payable	$26,500		=162900-136400
+Loss on sale of Equipment	$26,900
+Depreciation	$1,29,500		=642600-(580700-67600)
-Gain on sale of Investments	-$85,300
Cashflow from Operating Activities		$4,32,800
Investing Activities:
Sale of Equipment	$81,500
-Purchase of PPE	-$7,69,000		=2485000-(1892000-176000)
Sale of Investments	$1,56,000
Loans given to subsidiaries	-$61,500		=81500-143000
Cashflow from Investing Activities		-$5,93,000
Financing Activities:
-Dividend	-$1,93,200		=218300-(528200-503100)
-Repayment of Bonds	-$4,03,000
+Issue of Bonds	$6,69,000		=735000-(469000-403000)
+Issue of Common stock	$1,13,000		=1136000-1023000
Cashflow from Financing Activities		$1,85,800
Beginning Cash & Cash Equivalents		$68,400
Ending Cash & Cash Equivalents		$94,000

(Kindly Rate positively, if found helpful. Thank You:))