The balance sheet of Poodle Company at the end of 2011 is presented here, along with certain other information for 2012:

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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 2012 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 2012 using the indirect method in the Operating Activities section. Include a supplemental schedule for noncash activities.

2. Prepare a balance sheet at December 31, 2012.

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