Championship Boxing, Inc. Championship Boxing, Inc. is a small manufacturer of cardboard boxes of all sizes. You have reported for your first day of work, and the company is in an uproar. Yearly financial statements are being prepared, but a computer malfunction of the company's new BOX-9000 computer has inadvertently erased parts of the company's balance sheet, along with almost all related data except the company's statement of cash flows. The IT department is working to retrieve earlier backups, but estimates that the reconstruction of the data will take about 24 hours. Unfortunately, financial statements are to be presented at a stockholders' meeting in one hour. The company uses the indirect method to prepare its statement of cash flows (rather than the direct method), so your new supervisor believes the missing data for the balance sheet can be prepared using the statement of cash flows. You are assigned this task, since you were top student in your business school class. Meanwhile, the supervisor will go to the stockholders' meeting and give some introductory remarks. In addition to the statement of cash flows, the following data survived the computer mishap: A. The investments were sold for $280,000 cash. B. Equipment was acquired for $152,000 cash. C. Land was acquired for $326,000 cash. D. There were no disposals of equipment during the year. E 12,500 shares of common stock were sold for cash during the year. F. There was a 596,000 debit to Retained Earnings for cash dividends declared. Championship Boxing, Inc. Statement of Cash Flows For the Year Ended December 31, 2048 $186,540.00 18.400.00 (50,000.00) 3 125,370.00) (33,350.00) 41,070.00 (12.460.00) 10 $124,830.00 - Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash flow from operating activities: 4 Depreciation 5 Gain on sale of investments 6 Changes in current operating assets and liabilities: Increase in accounts receivable Increase in inventories Increase in accounts payable Decrease in accrued expenses payable 11 Net cash flow from operating activities - Cash flows from investing activities: 13 Cash received from sale of investments 14 Cash paid for purchase of land 15 Cash paid for purchase of equipment Net cash flow used for investing activities 1 Cash flows from financing activities: 13 Cash received from sale of common stock 19 Cash paid for dividends Net cash flow from financing activities 21 Change in cash zz Cash at the beginning of the year 23 Cash at the end of the year $280,000.00 (326,000.00) (152,000.00) 16 (198,000.00) $187,500.00 191,200.00) 96,300.00 $23,130,00 585,920.00 $609,050.00 Using the information on previous panels, complete the following comparative balance sheer. Championship Boxing, Inc. Comparative Balance Sheet December 31, 2048 and 2047 Dec 31, 2018 Dec 31, 2017 Assets : Cash $585,920.00 4 Accounts receivable net) 230,950.00 5 Inventories 618,420,00 Investments 0.00 7 Land 0.00 705,120.00 Equipment . Accumulated depreciation equipment 10 Total assets (166,400.00) 11 12 Liabilities $391,850.00 41,160.00 13 Accounts payable (merchandise creditors) 36 Accrued expenses payable (operating expenses) 15 Dividends payable 16 Total liabilities 19,200.00 $498,060,00 13 Stockholders' Equity 19 Common stock, 54 par 100,000.00 20 Paid-in capital in excess of par 280,000.00 21 Retained earnings 22 Total stockholders' equity 1,290,950.00 $1,858,450.00 23 Total liabilities and stockholders' equity