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 $151,920 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 $96,000 debit to Retained Earnings for cash dividends declared. $186,540.00 4 18,400.00 5 (50,000.00) Championship Boxing, Inc. Statement of Cash Flows For the Year Ended December 31, 20Y8 1 Cash flows from operating activities: 2 Net income 3 Adjustments to reconcile net income to net cash flow from operating activities: Depreciation Gain on sale of investments 6 Changes in current operating assets and liabilities: Increase in accounts receivable Increase in inventories Increase in accounts payable 10 Decrease in accrued expenses payable Net cash flow from operating activities 12 Cash flows from investing activities: 13 Cash received from sale of investments Cash paid for purchase of land Cash paid for purchase of equipment 7 (25,370.00) (33,550.00) 41,130.00 (12,470.00) 9 11 $124,680.00 $280,000.00 14 (326,000.00) 15 (151,920.00) 16 (197,920.00) $187,500.00 (91,200.00) Net cash flow used for investing activities 17 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 22 Cash at the beginning of the year 23 Cash at the end of the year 20 96,300.00 $23,060.00 585,920.00 $608,980.00 Using the information on previous panels, complete the following comparative balance sheet Championship Boxing, Inc. Comparative Balance Sheet December 31, 20Y8 and 2047 Dec 31, 2018 Assets 1 Dec 31, 2017 2 3 Cash $609,980.00 $585,920.00 230,950.00 4 Accounts receivable (net) 5 Inventories 618,320.00 6 Investments 0.00 7 Land 0.00 705,120.00 8 Equipment 9 Accumulated depreciation equipment (166,400.00) 10 Total assets 11 12 Liabilities 13 Accounts payable (merchandise creditors) 14 Accrued expenses payable (operating expenses) $391,800.00 41,150.00 15 Dividends payable 19,200.00 16 Total liabilities $498,080.00 17 18 100,000.00 Stockholders' Equity 19 Common stock, $4 par 20 Paid-in capital in excess of par 21 Retained earnings 280,000.00 1,290,940.00 22 Total stockholders' equity $1,858,440.00 23 Total liabilities and stockholders' equity