Following are selected balance sheet accounts of BioLazer Corp. at December 31, 2014 and 2013, and the increases or decreases in each account from 2013 to 2014. Also presented is selected income statement information for the year ended December 31, 2014, and additional information.

Additional information:
1. During 2014, equipment costing $30,000 was sold for cash.
2. Accounts receivable relate to sales of merchandise.
3. During 2014, $15,000 of bonds payable were converted to common stock. 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) Proceeds from bondspayable.

Transcribed Image Text:

Increase Selected balance sheet accounts 2014 3 rease 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 Selected income statement information for the year ended December 31, 2014 Sales revenue Depreciation Loss on sale of equipment $154,000 631,000 (141,000) $120,000 581,000 (106,000) $34,000 50,000 (35,000) $ (5,000) (10,000) 10,000 5,000 79,000 $95,000 $100,000 10,000 50,000 60,000 25,000 340,000 261,000 $932,000 54,000 8,000 90,000