The following are selected balance sheet accounts of Zach Corporation at December 31, 20X1 and 20X0, as well as the increases or decreases in each account from 20X0 to 20X1. Also presented is selected income statement information for the year ended December 31, 20X1, as well as additional information.

Selected Income Statement Information for the Year Ended December 31, 20X1

Sales revenue .................................. $155,000
Depreciation ........................................ 33,000
Gain on sale of equipment ................ 13,000
Net income .......................................... 28,000

Additional Information:

• Accounts receivable relate to sales of merchandise.

• During 20X1, equipment that cost $40,000 was sold for cash.

• During 20X1, $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, 20X1. For each item, determine both the amount that should be reported in Zach’s 20X1 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 20X1 20X0 Increase (Decrease) Assets Accounts receivable $ 34,000 $ 24,000 $10,000 30,000 11,000 Property, plant, and equipment Accumulated depreciation Liabilities and Stockholders' Equity Bonds payable Dividends payable Common stock, $1 par Additional paid-in capital Retained earnings 277,000 247,000 (178,000) (167,000) 49,000 8,000 22,000 46,000 5,000 19,000 3,000 3,000 3,000 9,000 104,000 3,000 91,000 6,000 13,000