Following are selected balance sheet accounts of Allman Bros. Corp. at December 31, 2014 and 2013, and the increases or decreases in each account from
Following are selected balance sheet accounts of Allman Bros. 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. Increase
\r\nSelected balance sheet accounts 2014 2013 (Decrease)
\r\nAssets Accounts receivable $ 34,000 $ 24,000 $ 10,000
\r\nProperty, plant, and equipment 277,000 247,000 30,000
\r\nAccumulated depreciation—plant assets (178,000) (167,000) (11,000)
\r\nLiabilities and stockholders’ equity
\r\nBonds payable $ 49,000 $ 46,000 $ 3,000
\r\nDividends payable 8,000 5,000 3,000
\r\nCommon stock, $1 par 22,000 19,000 3,000
\r\nAdditional paid-in capital 9,000 3,000 6,000
\r\nRetained earnings 104,000 91,000 13,000
\r\nSelected income statement information for the year ended December 31, 2014
\r\nSales revenue $ 155,000
\r\nDepreciation 33,000
\r\nGain on sale of equipment 14,500
\r\nNet income 31,000
\r\nAdditional information:
\r\n1. During 2014, equipment costing $45,000 was sold for cash.
\r\n2. Accounts receivable relate to sales of merchandise.
\r\n3. During 2014, $20,000 of bonds payable were issued in exchange for property, plant, and equipment.
\r\nThere was no amortization of bond discount or premium.
\r\nInstructions
\r\nDetermine the category (operating, investing, or financing) and the amount that should be reported in the statement of cash flows for the following items.
\r\n(a) Payments for purchase of property, plant, and equipment.
\r\n(b) Proceeds from the sale of equipment.
\r\n(c) Cash dividends paid.
\r\n(d) Redemption of bonds payable.