Masterv Problem: Statement of Cash FlowsChampionship 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 beingprepared, 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 thecompany'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 directmethod), 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 yourbusiness 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 $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.Statement of Cash FlowsYour 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 fromoperating activities, cash flows from investing activity, and cash flows from financing activities. Review the statement, and then proceed to the next panel.

Print Item Print Item Mastery Problem: Statement of Cash Flows Cash flows from (used for) operating activities: Net income Championship Boxing, Inc. $186,540 Adjustments to reconcile net income to net cash flow from operating activities: Championship Boxing, Inc. is a small manufacturer of cardboard boxes of all sizes. You have reported for your prepared, but a computer malfunction of the c Depreciation 18,400 erased parts company's sta stimates that Gain on sale of investments (50,000) Unfortunately, financial statements mpany us Changes in current operating assets and liabilities: method), so your new sup ared using the stat Increase in accounts receivable (25,410) busin some introductory Increase in inventories (33,450) In addition to the state survived the computer mishap Increase in accounts payable 41,100 . The investments were sold for $280,000 cash. . Equipment was acquired for $152,000 cash. Decrease in accrued ex ses payable (12,470) Land was acquired for $326,000 cash. Net cash flow from operating activities $124,710 . There were no disposals of equipment during the year. 12,500 shares of common stock were sold for cash during the year. Cash flows from (used for) investing activities: . There was a $96,000 debit to Retained Earnings for cash dividends declared. Cash received from sale of investments $280,000 Statement of Cash Flows Cash paid for purchase of land (326,000) Your supervisor has provided you with the following statement of cash flows, prepared using the indirect metho Cash paid for purchase of equipment (152,000) operating activities, cash flows from investing activity, and cash flows from financing activities. Review the state Net cash flow used for investing activities (198,000) Championship Boxing, Inc. Cash flows from (used for) financing activities: Statement of Cash Flows For the Year Ended December 31, 20Y8 Cash received from sale of common stock $187,500 Cash flows from (used for) operating activities Cash paid for dividends (91,200) Net income $186,540 Net cash flow from financing activities 96,300 Net increase in cash $23,010 Check My Work Print Item Net cash flow from Print Item Net increase in cash $23,010 Cash balance, January 1, 20Y8 Investments 585,920 Cash balance, December 31, 20Y8 Land $608,930 Equipment 705,120 Balance Sheet Accumulated depreciation-equipment (166,400) Using the information on above, complete the follo wing comparative balance sheet Total assets Championship Boxing, Inc. Comparative Balance Sheet Liabilities December 31, 20YB and 2017 Accounts payable (merchandise creditors) 20YB 20Y7 Accrued expenses payable (operating expenses) 41,150 Assets Cash $585.920 Dividends payable $498,080 Accounts receivable (net) 230,970 Total liabilities Inventories 618,420 Stockholders' Equity Investments $100,000 Land Common stock, $4 par 280,000 0: Equipment 705,120 Paid-in capital in excess of par Accumulated depreciation-equipment (166,400) Retained earnings Total stockholders' equity $1,858,410 Total assets Total liabilities and stockholders' equity Check My Work