Championship Boxing, Inc. Statement of Cash Flows Balance Sheet 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 studer 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 $152,080 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. E There was a $96,000 debit to retained Earnings for cash dividends declared. Statement of Cash Flows Your supervisor has provided you with the following statement of cash flows, prepared using the Indirect method. Recall that the statement of cash flows consists of the sections: cash flows from operating activities, cash flows from used for investing activities and cash flows from used to financing activities Review the statement, and then proceed to the next panel Championship Boxing, Inc. Statement of Cash Flows For the Year Ended December 31, 20YB 1 Cash flows from operating activities $136.540.00 2 Net income 3 Adjustments to reconcile net income to net cash flow from operating activities: Depreciation 18,400.00 (50,000.00) 5 Gain on sale of investments 6 Changes in current operating assets and liabilities: Increase in accounts receivable 7 25,390.00) (33,350.00) 3 Increase in inventories 41.130.00 9 Increase in accounts payable (12.48000) 10 Decrease in accrued expenses payable $124,850.00 11 $280.000.00 Net cash flow from operating activities 12 Cash flows from used for) investing activities 15 Cash from sale of investments 14 Cash used for purchase of Land 15 Cash used for purchase of equipment Net cash flow used for investing activities 11 Cash flows from (used for) financing activities: 18 Cash from sale of common stock (326,000.00) (152,080.00) (198,080.00) $187.500.00 (91,200.00) 19 Cash used for dividends 96,300.00 20 Net cash flow from financing activities $23.070.00 21 Increase (decrease) in cash 585,920.00 22 Cash at the beginning of the year 5608.990.00 23 Cash at the end of the year Balance Sheet Using the information on previous panels, complete the following comparative balance sheet. Use a minus sign to indicate any negative amount Championship Boxing, Inc. Comparative Balance Sheet December 31, 2018 and 2017 Dec 31, 2018 Dec 31, 2017 1 Assets 3 Cash $585,920.00 Accounts receivable (net) 250,970.00 5 Inventories 618,420,00 6 Investments 0.00 Land 0.00 # Equipment . Accumulated depreciation equipment 705,200.00 (166,400.00) 10 Total assets 12 Liabilities $391,800.00 13 Accounts payable (merchandise creditors) 14 Acupued expenses payable (operating expenses) 41,150.00 19,200.00 15 Dividends payable $498,080.00 16 Total liabilities 13 Stockholders' Equity 280,000.00 19 Common stock (54 par) 20 Paid-in capital in excess of par 21 Retained earnings 22 Total stockholders' equity 1,290,950.00 $1,858,450.00 Total liabilities and stockholders' equity