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

Required
1. Prepare a balance sheet at December 31, 2014.
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 2014 using the indirect method in the Operating Activities section.
4. Provide a possible explanation as to why Terrier decided to issue additional bonds for cash during 2014.

Data From Problem 12.9

The balance sheet of Terrier Company at the end of 2013 is presented here, along with certain other information for 2014:

                                                                                                December 31, 2013
Cash .............................................................................................$ 140,000
Accounts receivable.......................................................................155,000
Total current assets ...................................................................$ 295,000
Land .............................................................................................$ 300,000
Plant and equipment ....................................................................500,000
Accumulated depreciation .........................................................(150,000)
Investments ....................................................................................100,000
Total long-term assets ...............................................................$ 750,000
Total assets ...............................................................................$1,045,000
Current liabilities ........................................................................$ 205,000
Bonds payable ............................................................................$ 300,000
Common stock ...........................................................................$ 400,000
Retained earnings .........................................................................140,000
Total stockholders’ equity .........................................................$ 540,000
Total liabilities and stockholders’ equity ...............................$1,045,000

Other information is as follows:
a. Net income for 2014 was $70,000.
b. Included in operating expenses was $20,000 in depreciation.
c. Cash dividends of $25,000 were declared and paid.
d. An additional $150,000 of bonds was issued for cash.
e. Common stock of $50,000 was purchased for cash and retired.
f. Cash purchases of plant and equipment during the year were $200,000.
g. An additional $100,000 of bonds was issued in exchange for land.
h. During the year, sales exceeded cash collections on account by $10,000. All sales are on account.
i. The amount of current liabilities remained unchanged during the year.