Following are selected balance sheet accounts of Allman Bros. Corp. at December 31, 2025 and 2024, and the increases or decreases in each account from 2024 to 2025. Also presented is selected income statement information for the year ended December 31, 2025, and additional information.

Additional information:

1. During 2025, equipment costing $45,000 was sold for cash.

2. Accounts receivable relate to sales of merchandise.

3. During 2025, $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.

a. Payments for purchase of property, plant, and equipment.

b. Proceeds from the sale of equipment.

c. Cash dividends paid.

d. Redemption of bonds payable.

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2025 Depreciation Gain on sale of equipment Net income 2024 Selected balance sheet accounts: Assets Accounts receivable Property, plant, and equipment Accumulated depreciation-plant assets Liabilities and stockholders' equity Bonds payable $ 49,000 Dividends payable 8,000 Common stock, $1 par 22,000 Additional paid-in capital 9,000 Retained earnings 104,000 Selected income statement information for the year ended December 31, 2025: Sales revenue $ 155,000 33,000 14,500 31,000 $ 34,000 277,000 (178,000) $ 24,000 247,000 (167,000) Increase (Decrease) $ 46,000 5,000 19,000 3,000 91,000 $ 10,000 30,000 (11,000) $3,000 3,000 3,000 6,000 13,000