Exercise - Following are selected balance sheet accounts of Sander Bros. Corp. at December 31, 2012 and 2011, and the increases or decreases in each account from 2011 to 2012. Also presented is selected income statement information for the year ended December 31, 2012, and additional information.
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Selected balance sheet accounts
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Assets
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2012
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2011
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Increase
(Decrease)
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Accounts receivable
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$33,850
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$23,980
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$9,870
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Property, plant, and equipment
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277,430
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247,170
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30,260
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Accumulated depreciation
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(178,390)
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(167,660)
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(10,730)
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Liabilities and stockholders' equity
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2012
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2011
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Increase
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Bonds payable
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$ 49,410
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$46,270
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$3,140
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Dividends payable
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7,130
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5,470
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1,660
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Common stock, $1 par
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21,370
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18,880
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2,490
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Paid-in capital in excess of par-common stock
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9,850
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2,580
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7,270
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Retained earnings
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103,760
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91,630
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12,130
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Selected income statement information for the year ended December 31, 2012
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Sales revenue
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$154,610
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Depreciation
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38,160
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Gain on sale of equipment
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14,470
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Net income
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30,040
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Additional information:
1. During 2012, equipment costing $45,340 was sold for cash.
2. Accounts receivable relate to sales of merchandise.
3. During 2012, $24,810 of bonds payable were issued in exchange for property, plant, and equipment. There was no amortization of bond discount or premium.
Required - Determine the category (operating, investing, or financing) and the amount that should be reported in the statement of cash flows for the following items.
(a) Payments for purchase of property, plant, and equipment.
(b) Proceeds from the sale of equipment.
(c) Cash dividends paid.
(d) Redemption of bonds payable.