Mastery Problem: Statement of Cash Flows

Championship Eoxing, inc

Statement of Cash Flows

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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 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.

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.