Following are selected balance sheet accounts of Sander Bros. Corp. at December 31, 2010 and 2009, and the increases or decreases in each account from 2009 to 2010. Also presented is selected income statement information for the year ended December 31, 2010, and additional information.
Increase
Selected balance sheet accounts 2010 2009 (Decrease)
Assets
Accounts receivable $ 34,000 $ 24,000 $ 10,000
Property, plant, and equipment 277,000 247,000 30,000
Accumulated depreciation (178,000) (167,000) (11,000)
2010 2009 Increase
Liabilities and stockholders' equity
Bonds payable $ 49,000 $46,000 $ 3,000
Dividends payable 8,000 5,000 3,000
Common stock, $1 par 22,000 19,000 3,000
Additional paid-in capital 9,000 3,000 6,000
Retained earnings 104,000 91,000 13,000
Selected income statement information for the year ended December 31, 2010
Sales revenue $155,000
Depreciation 38,000
Gain on sale of equipment 14,500
Net income 31,000
Additional information:
1. During 2010, equipment costing $45,000 was sold for cash.
2. Accounts receivable relate to sales of merchandise.
3. During 2010, $25,000 of bonds payable were issued in exchange for property, plant, and equipment.
There was no amortization of bond discount or premium.
Instructions
Determine the category (operating, investing, or financing) and the amount that should be reported in
the statement of cash flows for the following items.
1. Payments for purchase of property, plant, and equipment.
2. Proceeds from the sale of equipment.
3. Cash dividends paid.
4. Redemption of bonds payable.