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 77,000 $ 54,800 Accounts receivable 602,000 625,000 Inventory Prepaid expenses Total current assets 615,200 14,800 426,000 ৪, ০00 1,113,800 1,824,000 565,400 1,258,600 148,000 73,000 $3,305,400 $2,593,400 1,309,000 Property, plant, and equipment Less accumulated depreciation 2,400,000 es 622,200 1,777,800 Net property, plant, and equipment Long-term investments Loans to subsidiaries 92,600 126,000 Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable 24 879,600 $ 28,600 576,000 Accrued liabilities 47,400 Income taxes payable Total current liabilities 140,800 122,800 1,049,000 746,200 418,000 Bonds payable 650,000 Total liabilities 1,699,000 1,164,200 Stockholders' equity: Common stock 1,102,000 1,006,000 Retained earnings Total stockholders' equity 504,400 423,200 1,429,200 1,606,400 Total liabilities and stockholders' equity $3,305,400 $2,593,400 The following additional information is available about the company's activities during this year:

Answer 1

$182,600 Lomax Company Statement of Cashflows Operating Activities: Net Income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation Expense Gain on Sale of Investments Loss on Sale of Equipment Decrease in Accounts Receivables Increase in Inventory Increase in Prepaid Expense Increase in Accounts Payable Decrease in Accrued Liabilities Increase in Income Taxes payable Net cash flow from operating activities $104,000 $66,600 $21,800 $23,000 $189,200 $6,800 $303,600 $18,800 $18,000 [Non-cash expense and so added back --> $47,200 + $622,200 - $565,400] [Non-cash income and so deducted back] [Non-cash expense and so added back] [$625000 - $602000; Working capital decreases and so added] [$426000-615200; Working capital increases and so deducted] ($8000 - 14800; Working capital increases and so deducted] [$879600 - $576000; Working capital decreases and so added] [$28600 - $47400; Working capital increases and so deducted] ($140800 - $122800; Working capital decreases and so added] $371,600 Cash Flow from Investing Activities: Cash received from sale of investments Cash received from sale of equipments Cash paid for purchasing equipment Cash paid for loan to subsidiaries Net cash flow from investing activities $122,000 $73,000 $718,000 $53,000 [Given] [Given] [$2,400,000 + $142,000 - $1,824,000)] [$73000 - $126000] $576,000

Cash Flow from Financing Activities: Cash realized from new common stocks Cash realized from new bonds issued Cash paid to retire bonds payable Cash dividend paid Net cash flow from financing activities Net increase in cash balance during the year Add: Beginning cash balance Ending Cash Balance $96,000 $618,000 $386,000 $101,400 ($1102000 - $1006000] [$418,000 + $386,000 - $650,000)] [Given] [$423,200 + $64,000 - $504,400] $226,600 $22,200 $54,800 $77,000