Selected Balance Sheet Increase Accounts 2021 2020 (Decrease) Assets Accounts receivable Inventory Prepaid insurance $40,000 $29,000 $11,000 17,000 22,000 (5,000) 7,000 5,000 2,000 Property, plant, and equipment 460,000 412,000 48,000 Accumulated depreciation (220,000) (165,000) 55,000 Liabilities and Stockholders' Equity Accounts payable 33,000 40,000 (7,000) Deferred tax liability 4,000 6,000 (2,000) Bonds payable 100,000 100,000 0 Bond discount (3,000) (4,000) (1,000) Common stock, $1 par 22,000 20,000 2,000 Additional paid-in capital 94,000 80,000 14,000 Retained earnings 106,000 91,000 15,000 Selected Income Statement Information for the Year Ended December 31, 2021 Sales revenues $312,000 Cost of goods sold (110,000) Insurance expense (12,000) Depreciation expense (70,000) Interest expense (16,000) Gain on sale of equipment 18,000 Income tax expense (24,000) Net income 98,000 Additional Information: a. Accounts receivable relate to sales of merchandise. b. During 2021, equipment costing $61,000 was sold for cash c. During 2021, Sunny issued a 10% stock dividend (2,000 shares). The market price of the $1 par value common stock was $8 per share at that time Required: (do not enter dollar sign: do not add a comma when entering an amount, Amounts to be deducted should be indicated with a minus sign) Items 1 through 8 represent activities that will be reported in Sunny'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 Sunny's 2021 statement of cash flows. b. Select the category (ie., O-Operating activity, 1-Investing activity and F- Financing activity) in which the amount should be reported in the statement of cash flows. 1) Cash collections from customers 2) Cash paid to suppliers 3) Cash paid for insurance 4) Cash paid for interest 5) Cash paid for income tax 6) Proceeds from sale of equipment 7) Payments for purchase of property, plant, and equipment 8) Cash dividends paid Amount Category