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	$	85,000	$	61,200
Accounts receivable		618,000		645,000
Inventory		624,800		434,000
Prepaid expenses		21,200		12,000
Total current assets		1,349,000		1,152,200
Property, plant, and equipment		2,440,000		1,856,000
Less accumulated depreciation		631,800		572,600
Net property, plant, and equipment		1,808,200		1,283,400
Long-term investments		109,400		172,000
Loans to subsidiaries		134,000		77,000
Total assets	$	3,400,600	$	2,684,600
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable	$	892,400	$	584,000
Accrued liabilities		33,400		54,600
Income taxes payable		151,200		129,200
Total current liabilities		1,077,000		767,800
Bonds payable		690,000		442,000
Total liabilities		1,767,000		1,209,800
Stockholders equity:
Common stock		1,118,000		1,014,000
Retained earnings		515,600		460,800
Total stockholders equity		1,633,600		1,474,800
Total liabilities and stockholders' equity	$	3,400,600	$	2,684,600

The following additional information is available about the companys activities during this year:
a.	The company declared and paid a cash dividend this year.
b.	Bonds with a principal balance of $394,000 were repaid during this year.
c.	Equipment was sold during this year for $77,000. The equipment had cost $158,000 and had $56,800 in accumulated depreciation on the date of sale.
d.	Long-term investments were sold during the year for $138,000. These investments had cost $62,600 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.

The company reported net income this year as follows:

Sales			$	3,280,000
Cost of goods sold				2,033,600
Gross margin				1,246,400
Selling and administrative expenses				1,004,200
Net operating income				242,200
Nonoperating items:
Gain on sale of investments	$	75,400
Loss on sale of equipment		24,200		51,200
Income before taxes				293,400
Income taxes				94,000
Net income			$	199,400

Required:
1.	Using the indirect method, prepare a statement of cash flows for this year. (List any deduction in cash and cash outflows as negative amounts.)