Chapter 23, Problem 10E

To determine

Given Information: Selected balance sheet accounts

Assets	2016 ($)	2017 ($)	(Increase/Decrease) ($)
Accounts receivable	34,000	24,000	10,000
Property, plant, and equipment	277,000	247,000	30,000
Accumulated depreciation—plant assets	(178,000)	(167,000)	(11,000)

Liabilities and stockholders’ equity

Bonds payable	$49,000	$46,000	$3,000
Dividends payable	8,000	5,000	3,000
Common stock, $1 par	22,000	19,000	3,000
Additional paid-in capital	9,000	3,000	6,000
Retained earnings	104,000	91,000	13,000

Selected income statement information for the year ended December 31, 2017

Sales revenue	$155,000
Depreciation	33,000
Gain on sale of equipment	14,500
Net income	31,000

To categorize: To categorize the following items (operating, investing, or financing) and compute the amount to be reported in the statement of cash flows.

• (a) Property, plant, and equipment purchased

• (b) Sale of equipment

• (c) Cash dividend

• (d) Bonds payable redeemed