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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 Total current assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Long-ters 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 $ 79,000 $ 56,400 606, 000 630.000 627,600 428,000 16.400 9,000 1.319,000 1,123,400 2.410,000 1,832,000 624,600 567. 200 1, 785,400 1,264,800 96, 800 154,000 128,000 74,000 $3,329, 200 $2,616,200 $882,800 $ 578,000 29,800 49. 200 143,400 124.400 1,056, 000 751,600 660.000 424,000 1.716,000 1,175.600 1,106,000 1,008,000 507, 200 432.600 1,613, 2001, 440, 600 $3.329,200 $2,616,200 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 $388,000 were repaid during this year. c. Equipment was sold during this year for $74,000. The equipment had cost $146,000 and had $49,600 in accumulated depreciation on the date of sale. d. Long-term investments were sold during the year for $126,000. These investments had cost $57.200 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

Statement of Cash Flows
Cash Flows from Operating Activities
Net Income as per Profit and Loss Account	186800
Add: Depreciation	107000
Less: Gain on sale of Investment	-68800
Add: Loss on sale of equipments	22400
Add: Decrease in Accounts Receivable	24000
Less: Increase in Inventory	-189600
Less: Increase in PREPAID Expenses	-7400
Add: Increase in Accounts Payable	304800
Less: Decrease in accrued liab	-19400
Add: Increase in Income Tax Payable	19000
Net cash from operating activities		378800
Cash flows from investing activities
Sale of Equipments	74000
Purchase of equipment	-724000
Sale of Investment	128000
Loans to Subsidiary	-54000
Net cash used in investing activities		-576000
Cash flows from financing activities
Proceeds from issuance of Bond	624000
Bonds Repaid	-388000
Issue of Common Stock	98000
Cash Dividend Paid	-112200
Net cash used in financing activities		221800
Net increase in cash and cash equivalents		24600
Cash and cash equivalents at beginning of period	56400
Cash and cash equivalents at end of period		81000