Following are selected balance sheet accounts of Del Conte Corp. at December 31, 2021 and 2020, and the increases or decreases in each account from 2020 to 2021. Also presented is selected income statement information for the year ended December 31, 2021, and additional information. 2021 2020 Increase (Decrease) $ 64,000 307,000 (208,000) $ 39,000 262,000 (182,000) $ 25,000 45,000 26,000 Selected Balance Sheet Accounts Assets Accounts receivable Property, plant, and equipment Accumulated depreciation Liabilities and Stockholders' Equity Bonds payable Dividends payable Common stock, $1 par Additional paid-in capital Retained earnings 94,000 15,500 52,000 16,500 134,000 76,000 11,000 34,000 9,000 106,000 18,000 4,500 18,000 7,500 28,000 Selected Income Statement Information for the Year Ended December 31, 2021 Sales revenue $ 185,000 Depreciation 63,000 Gain on sale of equipment 20,500 Net income 58,000 Additional information: a. Accounts receivable relate to sales of merchandise. b. During 2021, equipment costing $70,000 was sold for cash. c. During 2021, bonds payable with a face value of $50,000 were issued in exchange for property, plant, and equipment. There was no amortization of bond discount or premium. Required: Items 1 through 5 represent activities that will be reported in Del Conte's statement of cash flows for the year ended December 31, 2021. The following two responses are required for each item: a. Accounts receivable relate to sales of merchandise. b. During 2021, equipment costing $70,000 was sold for cash. c. During 2021, bonds payable with a face value of $50,000 were issued in exchange for property, plant, and equipment. There was no amortization of bond discount or premium. Required: Items 1 through 5 represent activities that will be reported in Del Conte's statement of cash flows for the year ended December 31, 2021. The following two responses are required for each item: a. Determine the amount that should be reported in Del Conte's 2021 statement of cash flows. b. Select the category (i.e., O - Operating activity, 1 - Investing activity and F - Financing activity) in which the amount should be reported in the statement of cash flows. Amount Category 1. Cash collections from customers (direct method). 2. Payments for purchase of property, plant, and equipment 3. Proceeds from sale of equipment. 4 Cash dividends paid. 5. Redemption of bonds payable