LO$13-3,$ LO$13-4,$ LO$13-5]$A comparative balance sheet for Lomax Company containing data for the last two years is as follows:Lomax CompanyComparative Balance Sheet$$This YearLast YearAssets$$Current assets:$$Cash and cash equivalents$ $90,000$$ $65,200$Accounts receivable$628,000657,500$Inventory$630,800439,000$Prepaid expenses$25,20014,500$Total current assets$1,374,0001,176,200$Property, plant, and equipment$2,465,0001,876,000$Less accumulated depreciation$637,800577,100$Net property, plant, and equipment$1,827,2001,298,900$Long$-$term investments$119,900187,000$Loans to subsidiaries$139,00079,500$Total assets$ $3,460,100$$ $2,741,600$Liabilities and Stockholders' Equity$$Current liabilities$$Accounts payable$ $900,400$$ $589,000$Accrued liabilities$36,40059,100$Income taxes payable$157,700133,200$Total current liabilities$1,094,500781,300$Bonds payable$715,000457,000$Total liabilities$1,809,5001,238,300$Stockholders equity:$$Common stock$1,128,0001,019,000$Retained earnings$522,600484,300$Total stockholders equity$1,650,6001,503,300$Total liabilities and stockholders' equity$ $3,460,100$$ $2,741,600$Problem $13-21($Algo$)$ Prepare and Interpret a Statement of Cash Flows $[$LO$13-1,$ LO$13-2,$ LO$13-3,$ LO$13-4,$ LO$13-5]$A comparative balance sheet for Lomax Company containing data for the last two years is as follows:Lomax CompanyComparative Balance Sheet$$This YearLast YearAssets$$Current assets:$$Cash and cash equivalents$ $90,000$$ $65,200$Accounts receivable$628,000657,500$Inventory$630,800439,000$Prepaid expenses$25,20014,500$Total current assets$1,374,0001,176,200$Property, plant, and equipment$2,465,0001,876,000$Less accumulated depreciation$637,800577,100$Net property, plant, and equipment$1,827,2001,298,900$Long$-$term investments$119,900187,000$Loans to subsidiaries$139,00079,500$Total assets$ $3,460,100$$ $2,741,600$Liabilities and Stockholders' Equity$$Current liabilities$$Accounts payable$ $900,400$$ $589,000$Accrued liabilities$36,40059,100$Income taxes payable$157,700133,200$Total current liabilities$1,094,500781,300$Bonds payable$715,000457,000$Total liabilities$1,809,5001,238,300$Stockholders equity:$$Common stock$1,128,0001,019,000$Retained earnings$522,600484,300$Total stockholders equity$1,650,6001,503,300$Total liabilities and stockholders' equity$ $3,460,100$$ $2,741,600$The following additional information is available about the companys activities during this year:$1$Paid a cash dividend of $\_\_\_2$blank$3?4$question mark$5\_\_\_6$blank$7.8$Retired bonds with a principal balance of $$399,000.9$Equipment costing $$168,000$ with accumulated depreciation of $$62,800$ was sold for $$79,500.10$Sold long$-$term investments for $$148,000.$ These investments had cost $$67,100$ when purchased several years ago.$11$The subsidiaries did not repay any outstanding loans.$12$Lomax did not repurchase any of its own stock.The company reported net income this year as follows:Sales$$$ $3,380,000$Cost of goods sold$2,095,600$Gross margin$1,284,400$Selling and administrative expenses$1,030,700$Net operating income$253,700$Nonoperating items:$$Gain on sale of investments$ $80,900$Loss on sale of equipment$(25,700)55,200$Income before taxes$308,900$Income taxes$99,000$Net income$$$ $209,900$Required:$1.$ Using the indirect method, prepare a statement of cash flows for this year.Note: Cash outflows and amounts to be deducted should be indicated with a minus sign.