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	$	101,000	$	74,000
Accounts receivable		650,000		685,000
Inventory		644,000		450,000
Prepaid expenses		34,000		20,000
Total current assets		1,429,000		1,229,000
Property, plant, and equipment		2,520,000		1,920,000
Less accumulated depreciation		651,000		587,000
Net property, plant, and equipment		1,869,000		1,333,000
Long-term investments		143,000		220,000
Loans to subsidiaries		150,000		85,000
Total assets	$	3,591,000	$	2,867,000
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable	$	918,000	$	600,000
Accrued liabilities		43,000		69,000
Income taxes payable		172,000		142,000
Total current liabilities		1,133,000		811,000
Bonds payable		770,000		490,000
Total liabilities		1,903,000		1,301,000
Stockholders equity:
Common stock		1,150,000		1,030,000
Retained earnings		538,000		536,000
Total stockholders equity		1,688,000		1,566,000
Total liabilities and stockholders' equity	$	3,591,000	$	2,867,000

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 $410,000 were repaid during this year.
c.	Equipment was sold during this year for $85,000. The equipment had cost $190,000 and had $76,000 in accumulated depreciation on the date of sale.
d.	Long-term investments were sold during the year for $170,000. These investments had cost $77,000 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			$	3,600,000
Cost of goods sold				2,232,000
Gross margin				1,368,000
Selling and administrative expenses				1,089,000
Net operating income				279,000
Nonoperating items:
Gain on sale of investments	$	93,000
Loss on sale of equipment		(29,000)		64,000
Income before taxes				343,000
Income taxes				110,000
Net income			$	233,000

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.)