Refer to all of the facts in Problem 12-9A.

Required

1. Prepare a balance sheet at December 31, 2010.

2. Using the format in the chapter’s appendix, prepare a statement of cash flows work sheet.

3. Prepare a statement of cash flows for 2010 using the indirect method in the Operating Activities section.

4. Provide a possible explanation as to why Poodle decided to purchase and retire bonds during 2010.

Transcribed Image Text:

December 31, 2009 $ 155,000 Cash Accounts receivable 140,000 $ 295,000 $ 100,000 Total current assets Land Plant and equipment 700,000 Accumulated depreciation (175,000) Investments 125,000 $ 750,000 $1,045,000 Total long-term assets Total assets $ 325,000 $ 100,000 $ 500,000 Current liabilities Bonds payable Common stock Retained earnings 120,000 $ 620,000 Total stockholders' equity Total liabilities and stockholders' equity $1,045,000