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: The investments were sold for $280,000 cash. Equipment was acquired for $151,920 cash. Land was acquired for $326,000 cash. There were no disposals of equipment during the year. 12,500 shares of common stock were sold for cash during the year. There was a $96,000 debit to Retained Earnings for cash dividends declared. Championship Boxing, Inc. Statement of Cash Flows For the Year Ended December 31, 2048 Cash flows from (used for) operating activities: Net income $186,540 Adjustments to reconcile net income to net cash flow from operating activities Depreciation 18,400 Gain on sale of investments (50,000) Changes in current operating assets and liabilities: Increase in accounts receivable (25,390) Increase in inventories (33,450) Increase in accounts payable 41,130 Decrease in accrued expenses payable (12,470) Net cash flow from operating activities $124,760 Cash flows from (used for) investing activities: Cash received from sale of investments $280,000 Cash paid for purchase of land (326,000) Cash paid for purchase of equipment (151,920) Net cash flow used for investing activities (197,920) Cash flows from (used for) financing activities: Cash received from sale of common stock $187.500 Cash paid for dividends (91.200) Net cash flow from financing activities 95,300 Net increase in cash $23,140 Cash balance, January 1, 2018 585,920 Cash balance, December 31, 2018 5609,060 Championship Boxing, Inc Comparative Balance Sheet December 31, 2048 and 2017 2048 2017 Assets Cash $585,920 230,950 Accounts receivable (net) Inventories 618,320 Investments Land Equipment Accumulated depreciation-equipment Total assets 705,120 (166,400) $391,800 Liabilities Accounts payable (merchandise creditors) Accrued expenses payable (operating expenses) Dividends payable Total liabilities 41,150 19,200 $498,080 Stockholders' Equity Common stock, $4 par Paid-in capital in excess of par $100,000 280,000 Retained earings Total stockholders' equity Total liabilities and stockholders' equity $1,858,420