Refer to all of the facts in Problem 12-9A.
Required
1. Prepare a balance sheet at December 31, 2017.
2. Using the format in the chapter’s appendix, prepare a statement of cash flows work sheet.
3. Prepare a statement of cash flows for 2017 using the indirect method in the Operating Activities section.
4. Provide a possible explanation as to why Poodle decided to purchase and retire bonds during 2017.
PROBLEM 12-9A
The balance sheet of Poodle Company at the end of 2016 is presented here, along with certain other information for 2017:
Other information is as follows:
a. Net income for 2017 was $50,000.
b. Included in operating expenses was $25,000 in depreciation.
c. Cash dividends of $40,000 were declared and paid.
d. An additional $50,000 of common stock was issued for cash.
e. Bonds payable of $100,000 were purchased for cash and retired at no gain or loss.
f. Cash purchases of plant and equipment during the year were $60,000.
g. An additional $200,000 of land was acquired in exchange for a long-term note payable.
h. During the year, sales exceeded cash collections on account by $15,000. All sales are on account.
i. The amount of current liabilities decreased by $20,000 during the year.
Required
1. Prepare a statement of cash flows for 2017 using the indirect method in the Operating Activ-ities section. Include a supplemental schedule for noncash activities.
2. Prepare a balance sheet at December 31, 2017.
3. What primary uses did Poodle make of the cash it generated from operating activities?
