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 $ 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

Answer 1

LOMAX COMPANY
Statement of Cash flows
Cash flows from operating activities
Net Income		$   230,900
Adjustments to reconcile net income to ;
Depreciation expense	$   138,500		649800-586100+74800
Gain on sale of investment	$   (91,900)
Loss on sale of equipment	$      28,700
Decrease in accounts receivable	$      34,500
Increase in inventory	$ (193,800)
Increase in prepaid expense	$   (13,700)
Increase in accounts payable	$   317,400
Decrease in accrued liabilities	$   (25,700)
Increase in income tax payable	$      29,500
		$   223,500
Net cash provided by operating activities		$   454,400
Cash flows from investing activities
Cash received from sale of equipment	$      84,500
Cash received from sale of investments	$   168,000
Cash paid to purchase equipment	$ (787,000)		1916000-2515000-188000
Loan given to subsidiaries	$   (64,500)
Net cash used by investing activities		$ (599,000)
Cash flows from financing activities
Cash paid for dividends	$ (225,600)		536600-531300-230900
Cash received from issue of bonds	$   687,000		765000-487000+409000
Cash paid to retire bonds	$ (409,000)
Cash received from issuance of common stock	$   119,000
Net cash provided by financing activities		$   171,400
Net Increase in cash and cash equivalents		$      26,800
Cash and cash equivalents at beginning of period		$      73,200
Cash and cash equivalents at end of period		$   100,000

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