Please do not give solution in image format thanku AssetsCurrent assets:Cash and cash equivalentsAccounts receivableInventoryPrepaid expensesLomax CompanyComparative Balance SheetTotal current assetsProperty, plant, and equipmentLess accumulated depreciationNet property, plant, and equipmentLong-term investmentsLoans to subsidiariesTotal assetsLiabilities and Stockholders' EquityCurrent liabilities:Accounts payableAccrued liabilitiesIncome taxes payable.Total current liabilities.Bonds payableTotal liabilitiesStockholders' equity:Common stockRetained earningsTotal stockholders' equityTotal liabilities and stockholders' equityThe company reported net income this year as follows:SalesCost of goods soldGross marginSelling and administrative expensesNet operating incomeNonoperating items:Gain on sale of investmentsThis Year$Loss on sale of equipmentIncome before taxesIncome taxesNet incomeLast Year81,000 $610,000620,00018,0001,329,000 1,133,0002,420,000 1,840,000627,000569,0001,793,0001,271,000101,000160,000130,00075,000$3,353,000 $2,639,000The following additional information is available about the company's activities during this year:58,000635,000430,00010,000$ 886,000 $ 580,00031,00051,000146,000126,000a. The company declared and paid a cash dividend this year.b. Bonds with a principal balance of $390,000 were repaid during this year.c. Equipment was sold during this year for $75,000. The equipment had cost $150,000 and had $52,000 in accumulated depreciationon the date of sale.d. Long-term investments were sold during the year for $130,000. These investments had cost $59,000 when purchased severalyears ago.e. The subsidiaries did not repay any outstanding loans during the year.f. Lomax did not repurchase any of its own stock during the year.$ 71,0001,063,000757,000670,000430,0001,733,000 1,187,0001,110,000 1,010,000510,000442,0001,620,0001,452,000$3,353,000 $2,639,000(23,000)$3,200,0001,984,0001,216,000983,000233,00048,000281,00090,000$ 191,000 Operating activities:Investing activities:Financing activities:Lomax CompanyStatement of Cash FlowsBeginning cash and cash equivalentsEnding cash and cash equivalents

The Indirect Method of Cash Flow Statement Preparation is a partial conversion of accrual basis…

Lomax Company Comparative Balance Sheet Assets Current assets: Cash and cash equivalents Accounts receivable Inventory Prepaid expenses Total current assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Long-term investments. Loans to subsidiaries Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Income taxes payable Total current liabilities Bonds payable Total liabilities Stockholders' equity: Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity This Year $ 81,000 $ 610,000 620,000 18,000 Last Year 58,000 635,000 430,000 10,000 1,329,000 1,133,000 2,420,000 1,840,000 569,000 627,000 1,793,000 101,000 130,000 $3,353,000 $2,639,000 1,063,000 670,000 1,733,000 1,271,000 160,000 75,000 $ 886,000 $ 580,000 31,000 51,000 146,000 126,000 757,000 430,000 1,187,000 1,110,000 1,010,000 510,000 442,000 1,620,000 1,452,000 $3,353,000 $2,639,000 The following additional information is available about the company's activities during this year: a. The company declared and paid a cash dividend this year. b. Bonds with a principal balance of $390,000 were repaid during this year. c. Equipment was sold during this year for $75,000. The equipment had cost $150,000 and had $52,000 in accumulated depreciation on the date of sale. d. Long-term investments were sold during the year for $130,000. These investments had cost $59,000 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.

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 35E: Classification of Cash Flows The following are several items that might be disclosed on a companys...