hampionship Boxing, Inc. thampionship 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 epared, 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 ompany'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. nfortunately, 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 belleves 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 siness school dass. Meanwhile, the supervisor will go to the stockholders' meeting and give some introductory remarks. 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 $152,000 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. tatement of Cash Flows our 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 three sections: cash flows from perating activities, cash flows from investing activities, and cash flows from financing activities. Review the sta ment, and then proceed to the next panel. Championship Boxing, Inc. Statement of Cash Flows For the Year Ended December 31, 2018 ash flows from (used for) operating activities: neck My Work Calculator Printem SALOws For the Year Ended December 31, 2018 Cash flows from (used for) operating activities: Net income $186,540 Adjustments to reconcile net income to net cash flow from operating activities: Depreciation 18,100 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 41,100 Decrease in accrued expenses payable (12,470) Net cash flow from operating activities 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 (152,000) Net cash flow used for investing activities Cash flows from (used for) financing activities: Cash received from sale of common stock $187,500 Cash naid for dividends 101 2002 $124,730 (198,000) Check My Work Print Item ch. 13 Lab Activity Calculator Cash flows from (Used Tomanding activities: Cash received from sale of common stock Cash paid for dividends Net cash flow from financing activities $187,500 (91,200) 96,300 Net Increase in cash Cash balance, January 1, 2048 Cash balance, December 31, 2048 $23,030 585,920 $608,950 Balance Sheet Using the information on above, complete the following comparative balance sheet. Championship Boxing, Inc. Comparative Balance Sheet December 31, 2018 and 2017 2048 2017 Assets Cash 608,950 $585.920 205,560 Accounts receivable (net) 230,950 Inventories 651,870 618,420 230,000 Tnvestments O Land 326,000 0 lm 2018 2017 Assets Cash 608,950 $585,920 Accounts receivable (net) 230,950 205,560 Inventories 651,870 618,420 Investments 0 230,000 Land 326,000 0 Equipment 705,120 553,120 Accumulated depreciation equipment -148,000 (166,400) 2,356,490 Total assets 2,045,020 Liabilities Accounts payable (merchandise creditors) $ 432,930 V $391,830 Accrued expenses payable (operating expenses) 41,160 -53,620 x Dividends payable 24,000 19,200 Total liabilities $498,090 464,620 x Liabilities Accounts payable (merchandise creditors) 432,930 $391,830 Accrued expenses payable (operating expenses) 41,160 -53,620 X Dividends payable 24,000 19,200 Total liabilities $498,090 464,620 x Stockholders' Equity Common stock, $4 par 150,000 $100,000 Paid-in capital in excess of par 417,500 280,000 Retained earnings 1,290,900 1,200,500 x Total stockholders' equity $1,858,400 1,580,730 X Total liabilities and stockholders' equity 2,356,490 2,045,020 Feedback Check My Work Review the relationships between the beginning and ending balance sheet amounts, and their effect on the stateme Check My Work