create 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 matunction of the company's new BOX-9000 computer has inadvertently erased parts of the company's balance sheet, along with most all related data except the company's s oment 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. 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 $96,000 debit to Retained Earnings for cash dividends declared. 1 Cash flows from operating activities: $186,540.00 Net income Adjustments to reconcile net income to net cash flow from operating activities: Depreciation 18,400.00 (50,000.00) Gain on sale of investments Changes in current operating assets and liabilities: Increase in accounts receivable (25,390.00) wypowy w Increase in accounts receivable (25,390.00) (33,350.00) Increase in inventories Increase in accounts payable 41,100.00 Decrease in accrued expenses payable (12,470.00) $124,830.00 Net cash flow from operating activities 12 Cash flows from (used for) investing activities: 13 Cash from sale of investments 14 Cash used for purchase of land $280,000.00 (326,000.00) (152,000.00) 15 Cash used for purchase of equipment 16 Net cash flow used for investing activities (198,000.00) (152,000.00) (198,000.00) 15 Cash used for purchase of equipment 16 Net cash flow used for investing activities 17 Cash flows from (used for) financing activities: 13 Cash from sale of common stock $187,500.00 (91,200.00) 19 Cash used for dividends 20 Net cash flow from financing activities 96,300.00 21 Increase (decrease) in cash $23,130.00 22 Cash at the beginning of the year 585,920.00 23 Cash at the end of the year $609,050.00 Balance Sheet December 31, 2010 HU ZUTI Dec. 31, 20Y8 Dec. 31, 2017 Assets 3 Cash $608,940.00 $585,920.00 230,950.00 205,580.00 4 Accounts receivable (net) 5 Inventories 651,770.00 618,420.00 6 Investments 0.00 230,000.00 7 Land 326,000.00 0.00 & Equipment 705,200.00 553,120.00 9 Accumulated depreciation-equipment (166,400.00) (148,000.00) 10 Total assets $2,356,380.00 $2,044,940.00 hce slee Total assets $2,044,940.00 $2,356,380.00 Liabilities $432,900.00 $391,800.00 Accounts payable (merchandise creditors) Accrued expenses payable (operating expenses) 41,150.00 53,620.00 Dividends payable 24,000.00 19,200.00 Total liabilities $498,050.00 $100,000.00 Stockholders' Equity Common stock (54 par) $150,000.00 $100,000.00 rennan 15. Anh Balance Sheet 1 IVICI Payavie $498,050.00 $100,000.00 16 Total liabilities Stockholders' Equity $150,000.00 $100,000.00 19 Common stock ($4 par) 20 Paid-in capital in excess of par 417,500.00 280,000.00 1,291,020.00 1,200,290.00 21 Retained earnings 22 Total stockholders' equity 23 Total Liabilities and stockholders' equity $1,858,520.00 $2,044,940.00 $2,356,380.00 $2,044,940.00
