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Statement of Cash Flows

Balance Sheet

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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

1	Cash flows from operating activities:
2	Net income	$186,540.00
3	Adjustments to reconcile net income to net cash flow from operating activities:
4	Depreciation	18,400.00
5	Gain on sale of investments	(50,000.00)
6	Changes in current operating assets and liabilities:
7	Increase in accounts receivable	(25,390.00)
8	Increase in inventories	(33,450.00)
9	Increase in accounts payable	41,130.00
10	Decrease in accrued expenses payable	(12,470.00)
11	Net cash flow from operating activities		$124,760.00
12	Cash flows from investing activities:
13	Cash received from sale of investments	$280,000.00
14	Cash paid for purchase of land	(326,000.00)
15	Cash paid for purchase of equipment	(152,000.00)
16	Net cash flow used for investing activities		(198,000.00)
17	Cash flows from financing activities:
18	Cash received from sale of common stock	$187,500.00
19	Cash paid for dividends	(91,200.00)
20	Net cash flow from financing activities		96,300.00
21	Change in cash		$23,060.00
22	Cash at the beginning of the year		585,920.00
23	Cash at the end of the year		$608,980.00

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