(Classification of Transactions) Following are selected balance sheet accounts of Allman Bros. Corp. at December 31, 2008 and 2007, and 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, and additional information.

Selected balance sheet accounts 2008 2007 Increase (Decrease)

Assets

Accounts receivable 34,000 24,000 10,000

Property, plant, and equipment 277,000 247,000 30,000

Accumulated dpreciation (178,000) (167,000) (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

Selected income statement information for the year ended December 31, 2008

Sales revenue 155,000

Depreciation 33,000

Gain on sale of equipment 14,500

Net income 31,000

Additional information:

1. During 2008, equipment costing 45,000 was sold for cash

2. Accounts receivable relate to sales of merchandise.

3. 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.

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.