E23-10 (Classification of Transactions) Following are selected balance sheet accounts of Sander Bros. Corp. at December 31, 2010 and 2009, and the increases or decreases in each account from 2009 to 2010. Also presented is selected income statement information for the year ended December 31, 2010, and additional information. Increase Selected balance sheet accounts 2010 2009 (Decrease) Assets Accounts receivable $ 34,000 $ 24,000 $ 10,000 Property, plant, and equipment 277,000 247,000 30,000 Accumulated depreciation (178,000) (167,000) (11,000) 2010 2009 Increase 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, 2010 Sales revenue $155,000 Depreciation 38,000 Gain on sale of equipment 14,500 Net income 31,000 Additional information: 1. During 2010, equipment costing $45,000 was sold for cash. 2. Accounts receivable relate to sales of merchandise. 3. During 2010, $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. 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