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:

Net income for 2017 was $50,000.

Included in operating expenses was $25,000 in depreciation.

Cash dividends of $40,000 were declared and paid.

An additional $50,000 of common stock was issued for cash.

Bonds payable of $100,000 were purchased for cash and retired at no gain or loss.

Cash purchases of plant and equipment during the year were $60,000.

An additional $200,000 of land was acquired in exchange for a long-term note payable.

During the year, sales exceeded cash collections on account by $15,000. All sales are on account.

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	$
Adjustments to reconcile net income to net cash provided by operating activities:
Accumulated depreciation
	$
Cash Flows from Investing Activities
	$
Cash Flows from Financing Activities
	$
	$
	$
Cash balance, December 31, 2016
Cash balance, December 31, 2017	$
Schedule of Noncash Investing and Financing Activities
	$

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

Poodle Company
Balance Sheet
December 31, 2017
	$
Total current assets	$
	$
Total long-term assets	$
Total assets	$
	$
	$
	$
Total stockholders' equity	$
Total liabilities and stockholders' equity	$

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