Question

Following are selected balance sheet accounts of Vaughn Bros. Corp. at December 31, 2020 and 2019, and the increases or decreases in each account from 2019 to 2020. Also presented is selected income statement information for the year ended December 31, 2020, and additional information.

Selected balance sheet accounts
Assets		2020			2019			Increase (Decrease)
Accounts receivable		$34,200			$24,200			$10,000
Property, plant, and equipment		274,900			249,200			25,700
Accumulated depreciation—plant assets		(179,600	)		(167,900	)		(11,700	)
Liabilities and stockholders’ equity		2020			2019			Increase
Bonds payable		$ 49,300			$45,800			$3,500
Dividends payable		7,900			5,100			2,800
Common stock, $1 par		22,200			19,000			3,200
Additional paid-in capital		9,000			2,900			6,100
Retained earnings		104,200			91,900			12,300
Selected income statement information for the year ended December 31, 2020:
Sales revenue		$154,300
Depreciation		37,600
Gain on sale of equipment		14,500
Net income		31,300

Additional information:

1.		During 2020, equipment costing $44,700 was sold for cash.
2.		Accounts receivable relate to sales of merchandise.
3.		During 2020, $20,100 of bonds payable were issued in exchange for property, plant, and equipment. There was no amortization of bond discount or premium.

Determine the category (operating, investing, or financing) and the amount that should be reported in the statement of cash flows for the following items.

				Activity
(a)		Payments for purchase of property, plant, and equipment.		select a kind of activity                                                          FinancingInvestingOperating		$enter a dollar amount
(b)		Proceeds from the sale of equipment.		select a kind of activity                                                          FinancingInvestingOperating		$enter a dollar amount
(c)		Cash dividends paid.		select a kind of activity                                                          FinancingInvestingOperating		$enter a dollar amount
(d)		Redemption of bonds payable.		select a kind of activity                                                          FinancingInvestingOperating		$enter a dollar amount

PLEASE MAKE SURE YOU ANSWER IS CORRECT! ONE "EXPERT" ALREADY SUBMITTED INCORRECT ANSWERS.

Answer 1

Determine the category (operating, investing, or financing) and the amount that should be reported in the statement of cash flows for the following items.

				Activity
(a)		Payments for purchase of property, plant, and equipment.		Investing		249200-44700-274900 = 70400-20100 = -50300
(b)		Proceeds from the sale of equipment.		Investing		44700-25900+14500 = 33300
(c)		Cash dividends paid.		Financing		91900+31300-104200 = -19000
(d)		Redemption of bonds payable.		Financing		-16600