Exercise 23-10 2014 2013 Increase (Decrease) 2014 2013 Increase Activity Exercis

Question

Exercise 23-10

2014

2013

Increase
(Decrease)

2014

2013

Increase

Activity

Exercise 23-10

Your answer is partially correct. Try again. 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.
Selected balance sheet accounts Assets

2014

2013

Increase
(Decrease)

Accounts receivable $34,710 $23,260 $11,450 Property, plant, and equipment 277,480 246,720 30,760 Accumulated depreciation—plant assets (177,110 ) (166,410 ) (10,700 ) Liabilities and stockholders’ equity

2014

2013

Increase

Bonds payable $ 48,770 $45,120 $3,650 Dividends payable 8,940 4,220 4,720 Common stock, $1 par 22,290 19,320 2,970 Additional paid-in capital 9,560 2,400 7,160 Retained earnings 104,400 90,980 13,420 Selected income statement information for the year ended December 31, 2014 Sales revenue $154,330 Depreciation 38,030 Gain on sale of equipment 14,250 Net income 31,760
Additional information:
1. During 2014, equipment costing $44,900 was sold for cash. 2. Accounts receivable relate to sales of merchandise. 3. During 2014, $25,070 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.

FinancingInvestingOperating

$

(b) Proceeds from the sale of equipment.

FinancingInvestingOperating

$

(c) Cash dividends paid.

FinancingInvestingOperating

$

(d) Redemption of bonds payable.

FinancingInvestingOperating

$

Explanation / Answer

a) Payments for purchase of property, plant, and equipment = Investing activity

=(246720-166410)+44900-(277480-177110)+177110-166410

=35540

b) Proceeds from the sale of equipment= Investing activity=44900+14250=59150

c) Cash dividends paid= Financing activity=31760-13420=18340

d) Redemption of bonds payable=Financing activity=25070-3650=21420

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