The following are selected balance sheet accounts of Zach Corporation at December 31, 2017 and 2016, as well as 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, as well as additional information.

Selected Balance Sheet Accounts

Selected Income Statement Information for the Year Ended
December 31, 2017
Sales revenue......................$155,000
Depreciation..........................33,000
Gain on sale of equipment.........13,000
Net income...........................28,000
Additional Information:
∙ Accounts receivable relate to sales of merchandise.
∙ During 2017, equipment that cost $40,000 was sold for cash.
∙ 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.
Required:
Items 1 through 5, which follow, represent activities that will be reported in Zach's statement of cash flows for the year ended December 31, 2017. For each item, determine both the amount that should be reported in Zach's 2017 statement of cash flows and the section (operating, investing, or financing) in which the item should appear.
1. Cash collections from customers (direct method)
2. Payments for the purchase of property, plant, and equipment
3. Proceeds from the sale of equipment
4. Cash dividends paid
5. Redemption of bonds payable

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Increase (Decrease) 2017 2016 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 $34,000 277,000 (178,000) $24,000 247,000 (167,000) $10,000 30,000 11,000 49,000 8,000 22,000 9,000 104,000 46,000 5,000 19,000 3,000 91,000 3,000 3,000 3,000 6,000 13,000