Following are selected statement of financial position accounts of Sander Bros. Corp. at December 31, 2020 and 2019, and the increases or decreases in each account from 2019 to 2020. Also presented is selected income statement information for the year ended December 31, 2020, and additional information.

Selected income statement information for the year ended December 31, 2020

Sales revenue.............................................$155,000Depreciation...................................................38,000Gain on sale of equipment...........................14,500Net income.....................................................31,000

Additional information:

1. During 2020, equipment costing $45,000 was sold for cash.

2. Accounts receivable relate to sales of merchandise.

3. During 2020, $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.

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.

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Increase Selected statement of financial position accounts 2020 (Decrease) 2019 Assets Property, plant, and equipment Accumulated depreciation Accounts receivable $277,000 $247,000 $30,000 (178,000) (167,000) (11,000) 34,000 24,000 10,000 Equity and liabilities $ 22,000 $ 3,000 $ 19,000 Share capital-ordinary, $1 par Share premium-ordinary Retained earnings Bonds payable 9,000 3,000 6,000 104,000 91,000 13,000 49,000 46,000 3,000 Dividends payable 8,000 5,000 3,000