1. Year-End Balance Sheet and Statement of Cash FlowsIndirect Method

   The balance sheet of Poodle Company at the end of 2016 is presented here, along with certain other information for 2017:

   	December 31, 2016

   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:

   1. Net income for 2017 was $50,000.
   2. Included in operating expenses was $25,000 in depreciation.
   3. Cash dividends of $40,000 were declared and paid.
   4. An additional $50,000 of common stock was issued for cash.
   5. Bonds payable of $100,000 were purchased for cash and retired at no gain or loss.
   6. Cash purchases of plant and equipment during the year were $60,000.
   7. An additional $200,000 of land was acquired in exchange for a long-term note payable.
   8. During the year, sales exceeded cash collections on account by $15,000. All sales are on account.
   9. 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 Activities section. Include a supplemental schedule for noncash activities. Use the minus sign to indicate cash payments, cash outflows, or decreases in cash.

   Poodle Company
   Statement of Cash Flows
   For the Year Ended December 31, 2017
   Cash Flows from Operating Activities
   Cash collected from customers Cash dividends paid Net income Net increase in cash Net loss Retained earnings	$
   Adjustments to reconcile net income to net cash provided by operating activities:
   Accumulated depreciation Decrease in accounts receivable Depreciation expense Increase in current liabilities Payment of cash dividends Retirement of bonds
   Acquisitions of plant and equipment Cash collections on account Decrease in accounts receivable Increase in accounts receivable Retirement of bonds Sales revenue
   Decrease in accounts receivable Decrease in current liabilities Increase in current liabilities Issuance of common stock Operating expenses Retirement of bonds
   Net cash provided by operating activities Net cash used by operating activities	$
   Cash Flows from Investing Activities
   Accumulated depreciation Acquisitions of plant and equipment Depreciation expense Issuance of common stock Payment of cash dividends Retirement of bonds	$
   Cash Flows from Financing Activities
   Acquisition and retirement of stock Acquisitions of plant and equipment Depreciation expense Increase in accounts receivable Issuance of additional bonds Payment of cash dividends	$
   Acquisition of land in exchange for note Acquisition of plant and equipment Acquisition and retirement of stock Depreciation expense Increase in accounts receivable Retirement of bonds
   Acquisition of land in exchange for note Acquisition and retirement of stock Acquisitions of plant and equipment Decrease in current liabilities Depreciation expense Issuance of common stock
   Net cash provided by financing activities Net cash used by financing activities	$
   Net decrease in cash Net increase in cash	$
   Cash balance, December 31, 2016
   Cash balance, December 31, 2017	$
   Schedule of Noncash Investing and Financing Activities
   Acquisition of plant and equipment Acquisition of land in exchange for note Acquisition and retirement of stock Increase in accounts receivable Issuance of additional bonds Payment of cash dividends	$

   2. Prepare a balance sheet at December 31, 2017.

   Poodle Company
   Balance Sheet
   December 31, 2017
   Accumulated depreciation Cash Current liabilities Investments Plant and equipment Retained earnings	$
   Accounts receivable Accumulated depreciation Common stock Investments Land Plant and equipment
   Total current assets	$
   Accounts receivable Cash Common stock Current liabilities Land Retained earnings	$
   Accounts receivable Long-term note payable Cash Current liabilities Plant and equipment Retained earnings
   Accounts receivable Accumulated depreciation Cash Depreciation expense Common stock Retained earnings
   Accounts receivable Cash Common stock Current liabilities Investments Long-term note payable
   Total long-term assets	$
   Total assets	$
   Accounts receivable Accumulated depreciation Cash Current liabilities Investments Plant and equipment	$
   Accounts receivable Accumulated depreciation Cash Common stock Land Long-term note payable	$
   Accounts receivable Accumulated depreciation Cash Common stock Investments Plant and equipment	$
   Accounts receivable Cash Investments Land Net income Retained earnings
   Total stockholders' equity	$
   Total liabilities and stockholders' equity	$

   3. What primary uses did Poodle make of the cash it generated from operating activities?

   • Purchase of plant and equipment.
   • Payment of accounts payable.
   • Redemption of bonds.
   • Repayment of loans.