Statement of Cash Flows Using a Work Sheet—Indirect Method (Appendix)

Refer to all of the facts in Problem 12-9.

Required 1. Prepare a balance sheet at December 31, 2008.

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 2008 using the indirect method in the Operating Activities section.

4. Provide a possible explanation as to why Terrier decided to issue additional bonds for cash during 2008.