Following are selected statement of financial position accounts of Sander Bros. Corp. at December 31, 2022 and 2021, and the increases or decreases in each account from 2021 to 2022. Also presented is selected income statement information for the year ended December 31, 2022, and additional information.

Additional information:

1. During 2022, equipment costing $45,000 was sold for cash.

2. Accounts receivable relate to sales of merchandise.

3. During 2022, $25,000 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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Increase Selected statement of financial position accounts 2022 2021 (Decrease) Assets Property, plant, and equipment $ 277,000 $247,000 $30,000 Accumulated depreciation (178,000) (167,000) (11,000) Accounts receivable 34,000 24,000 10,000 Equity and liabilities Share capital-ordinary, $1 par Share premium-ordinary $ 22,000 $ 19,000 $ 3,000 9,000 3,000 6,000 Retained earnings 104,000 91,000 13,000 Bonds payable 49,000 46,000 3,000 Dividends payable 8,000 5,000 3,000 Selected income statement information for the year ended December 31, 2022 Sales revenue $ 155,000 Depreciation 38,000 Gain on sale of equipment 14,500 Net income 31,000