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:

a. Net income for 2017 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 2017 using the indirect method in the Operating Activities section. Include a supplemental schedule for noncash activities.

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

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