The balance sheet of Poodle Company at the end of 2009 is presented here, along with certain other information for 2010: Other information is as follows: a. Net income for 2010 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 2010 using the indirect method in the Operating Activities section. Include a supplemental schedule for noncash activities. 2. Prepare a balance sheet at December 31, 2010. 3. What primary uses did Poodle make of the cash it generated from operatingactivities?
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