Exercise 23-10

Following are selected balance sheet accounts of Larkspur Bros. Corp. at December 31, 2017 and 2016, and the increases or decreases in each account from 2016 to 2017. Also presented is selected income statement information for the year ended December 31, 2017, and additional information.

Selected balance sheet accounts
Assets		2017			2016			Increase (Decrease)
Accounts receivable		$34,200			$23,800			$10,400
Property, plant, and equipment		277,400			246,200			31,200
Accumulated depreciationplant assets		(177,000	)		(167,300	)		(9,700	)
Liabilities and stockholders equity		2017			2016			Increase
Bonds payable		$ 48,600			$45,600			$3,000
Dividends payable		8,000			5,000			3,000
Common stock, $1 par		21,900			18,800			3,100
Additional paid-in capital		9,100			3,000			6,100
Retained earnings		104,100			91,100			13,000
Selected income statement information for the year ended December 31, 2017:
Sales revenue		$155,600
Depreciation		38,200
Gain on sale of equipment		14,600
Net income		31,300

Additional information:

1.		During 2017, equipment costing $44,800 was sold for cash.
2.		Accounts receivable relate to sales of merchandise.
3.		During 2017, $20,000 of bonds payable were issued in exchange for property, plant, and equipment. There was no amortization of bond discount or premium.

Determine the category (operating, investing, or financing) and the amount that should be reported in the statement of cash flows for the following items.

				Activity
(a)		Payments for purchase of property, plant, and equipment.		FinancingInvestingOperating		$
(b)		Proceeds from the sale of equipment.		FinancingInvestingOperating		$
(c)		Cash dividends paid.		FinancingInvestingOperating		$
(d)		Redemption of bonds payable.		FinancingInvestingOperating		$