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

Required
1. Prepare a balance sheet at December 31, 2014.
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 2014 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 2014.

Data From Problem 12.9A

The balance sheet of Poodle Company at the end of 2013 is presented here, along with certain other information for 2014:
                                                                                        December 31, 2013
                                                                                            Cash $ 155,000
Accounts receivable...........................................................140,000
Total current assets .......................................................$ 295,000
Land .................................................................................$ 100,000
Plant and equipment ........................................................700,000
Accumulated depreciation .............................................(175,000)
Investments .......................................................................125,000
Total long-term assets ...................................................$ 750,000
Total assets ...................................................................$1,045,000
Current liabilities ............................................................$ 325,000
Bonds payable ................................................................$ 100,000
Common stock ................................................................$ 500,000
Retained earnings ..............................................................120,000
Total stockholders’ equity ..............................................$ 620,000
Total liabilities and stockholders’ equity ....................$1,045,000

Other information is as follows:
a. Net income for 2014 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.