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 three sections: cash flows from operating activities, cash flows from investing activities, and cash flows from 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, 20Y8
Cash flows from (used for) operating activities:
Net income	$186,540
Adjustments to reconcile net income to net cash flow from operating activities:
Depreciation	18,400
Gain on sale of investments	(50,000)
Changes in current operating assets and liabilities:
Increase in accounts receivable	(25,410)
Increase in inventories	(33,450)
Increase in accounts payable	41,130
Decrease in accrued expenses payable	(12,470)
Net cash flow from operating activities			$124,740
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	(151,920)
Net cash flow used for investing activities			(197,920)
Cash flows from (used for) financing activities:
Cash received from sale of common stock	$187,500
Cash paid for dividends	(91,200)
Net cash flow from financing activities			96,300
Net increase in cash			$23,120
Cash balance, January 1, 20Y8			585,920
Cash balance, December 31, 20Y8			$609,040

Balance Sheet

Using the information on above, complete the following comparative balance sheet.

Championship Boxing, Inc. Comparative Balance Sheet December 31, 20Y8 and 20Y7
	20Y8			20Y7
Assets
Cash		$			$585,920
Accounts receivable (net)		230,970
Inventories					618,320
Investments		0
Land					0
Equipment		705,120
Accumulated depreciation-equipment		(166,400)
Total assets		$			$
Liabilities
Accounts payable (merchandise creditors)		$			$391,800
Accrued expenses payable (operating expenses)		41,160
Dividends payable					19,200
Total liabilities		$498,090			$
Stockholders' Equity
Common stock, $4 par		$			$100,000
Paid-in capital in excess of par					280,000
Retained earnings
Total stockholders' equity		$1,858,410			$
Total liabilities and stockholders' equity		$			$