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	$	97,000	$	70,800
Accounts receivable		642,000		675,000
Inventory		639,200		446,000
Prepaid expenses		30,800		18,000
Total current assets		1,409,000		1,209,800
Property, plant, and equipment		2,500,000		1,904,000
Less accumulated depreciation		646,200		583,400
Net property, plant, and equipment		1,853,800		1,320,600
Long-term investments		134,600		208,000
Loans to subsidiaries		146,000		83,000
Total assets	$	3,543,400	$	2,821,400
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable	$	911,600	$	596,000
Accrued liabilities		40,600		65,400
Income taxes payable		166,800		138,800
Total current liabilities		1,119,000		800,200
Bonds payable		750,000		478,000
Total liabilities		1,869,000		1,278,200
Stockholders equity:
Common stock		1,142,000		1,026,000
Retained earnings		532,400		517,200
Total stockholders equity		1,674,400		1,543,200
Total liabilities and stockholders' equity	$	3,543,400	$	2,821,400

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 $406,000 were repaid during this year.
c.	Equipment was sold during this year for $83,000. The equipment had cost $182,000 and had $71,200 in accumulated depreciation on the date of sale.
d.	Long-term investments were sold during the year for $162,000. These investments had cost $73,400 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			$	3,520,000
Cost of goods sold				2,182,400
Gross margin				1,337,600
Selling and administrative expenses				1,067,800
Net operating income				269,800
Nonoperating items:
Gain on sale of investments	$	88,600
Loss on sale of equipment		(27,800)		60,800
Income before taxes				330,600
Income taxes				106,000
Net income			$	224,600

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.)