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 doto 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 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, 2018 Cash flows frarn (used for operating activities: 6186,540 Adjustments to reconcile net income to net cash flow from operating activities Depreciation 18.400 Gain on sale of investment (50,000) Changes in current operating assets and liabilities Tecrease in accounts receivable (25390) Increase in inventories (33,450) Increase in accounts payable 41,100 Decrease in accrued expenses payable (12.480) Net cash flow from operating activities 3124,720 Cash flows from (used for investing activities Cash received from sale of investments $280,000 Cash paid for purchase of tand (326,000) Cash paid for purchase of equipment (152,000) Net cash flow used for investing activities (198.000) Cash flows from (used for) financing activities Cash received from sale of common stock $187,500 Cash paid for dividends 191,200) Net Income statement, and Championship Boxing, Inc. Statement of Cash Flows 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 18,400 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 (12,480) 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 paid for dividends (91,200) Net cash flow from financing activities Net increase in cash Cash balance, January 1, 2048 Cash balance, December 31, 2018 $124,720 (198,000) 96,300 $23,020 585,920 $608,940 Balance Sheet Using the information on above, complete the following comparative balance sheet. Championship Boxing, Inc. Comparative Balance Sheet December 31, 2018 and 2017 2018 2017 Assets Cash 608,940 $585,920 205,560 230,950 Accounts receivable (net) 651,770 618,320 Inventories 0 Investments 230,000 0 Land 326,000 Equipment 705,200 553,200 Accumulated depreciation equipment (166,400) 148,000 Total assets 1,704,690 x 2,193,000 X Liabilities 432,900 $391,800 Accounts payable (merchandise creditors) Accrued expenses pay (operating expenses) Dividends payable 41,150 53,620 x 24,000 19,200 Total liabilities $498,050 464,650 x Stockholders' Equity Common stock, $4 par 150,000 $100,000 417,500 280,000 Paid-in capital in excess of par Retained earnings 1,290,910 1,200,290 x Total stockholders' equity $1,858,410 1,580,450 X Total liabilities and stockholders' equity 3,716,820 X 2,145,100 X