The following are selected balance sheet accounts of Zach Corporation at December 31, 2008 and 2007, as well as the increases or decreases in each account from 2007 to 2008. Also presented is selected income statement information for the year ended December 31, 2008, as well as additional information.

Additional Information:

• Accounts receivable relate to sales of merchandise.

• During 2008, equipment that cost $40,000 was sold for cash.

• During 2008, $20,000 of bonds payable were issued in exchange for property, plant and equipment. There was no amortization of bond discount or premium.

Required:
Items 1 through 5, which follow, represent activities that will be reported in Zach’s statement of cash flows for the year ended December 31, 2008. For each item, determine both the amount that should be reported in Zach's 2008 statement of cash flows and the section (operating, investing, or financing) in which the item should appear.

1. Cash collections from customers (direct method)
2. Payments for the purchase of property, plant and equipment 3. Proceeds from the sale of equipment 4. Cash dividends paid 5. Redemption of bonds payable

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Selected Balance Sheet Accounts 2008 2007 Increase (Decrease) Assets Accounts receivable Property, plant and equipment Accumulated depreciation $ 34,000 $ 24,000 $10,000 277,000 (178,000) 247,000 (167,000) 30,000 11,000 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