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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	$	61,000	$	40,000
Accounts receivable		710,000		530,000
Inventory		848,000		860,000
Prepaid expenses		10,000		5,000
Total current assets		1,629,000		1,435,000
Property, plant, and equipment		3,170,000		2,600,000
Less accumulated depreciation		810,000		755,000
Net property, plant, and equipment		2,360,000		1,845,000
Long-term investments		60,000		110,000
Loans to subsidiaries		214,000		170,000
Total assets	$	4,263,000	$	3,560,000
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable	$	970,000	$	670,000
Accrued liabilities		65,000		82,000
Income taxes payable		95,000		80,000
Total current liabilities		1,130,000		832,000
Bonds payable		820,000		600,000
Total liabilities		1,950,000		1,432,000
Stockholders equity:
Common stock		1,740,000		1,650,000
Retained earnings		573,000		478,000
Total stockholders equity		2,313,000		2,128,000
Total liabilities and stockholders' equity	$	4,263,000	$	3,560,000
Answer is not complete Lomax Company Statement of Cash Flows Operating activities: Net income $170,000 Adjustments to convert net income to cash basis: Depreciation $95,000 Gain on sale of investments (60,000) Loss on sale of equipment 20,000 Increase in accounts receivable (180,000) Decrease in inventory 12,000 Increase in prepaid expenses (5,000) Increase in accounts payable 300,000 Decrease in accrued liabilities (17,000) Increase in income taxes payable 15,000 180,000 Net cash provided by operating activities 350,000 Investing activities: Loan to subsidiaries (44,000) Proceeds from sale of long-term investments 110,000 Additions to plant and equipment (700,000) 70,000 Net cash used in investing activities (564,000) Financing activities: Cash dividends to stockholders (350,000) 90,000 Net cash provided by financing activities (260,000) Net increase in cash and cash equivalents (474,000) Beginning cash and cash equivalents 40,000 Ending cash and cash equivalents $(434,000)

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