Following are selected balance sheet accounts of Allman Bros. Corp. at December

Question

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.

2014

2013

Increase
(Decrease)

2014

2013

Increase

Additional information:

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

Selected balance sheet accounts Assets

2014

2013

Increase
(Decrease)

Accounts receivable $34,210 $24,180 $10,030 Property, plant, and equipment 276,090 246,250 29,840 Accumulated depreciation—plant assets (178,600 ) (167,470 ) (11,130 ) Liabilities and stockholders’ equity

2014

2013

Increase

Bonds payable $ 48,400 $45,420 $2,980 Dividends payable 8,970 4,200 4,770 Common stock, $1 par 21,330 18,870 2,460 Additional paid-in capital 9,510 2,480 7,030 Retained earnings 104,690 91,390 13,300 Selected income statement information for the year ended December 31, 2014 Sales revenue $155,880 Depreciation 37,080 Gain on sale of equipment 15,270 Net income 30,750

Explanation / Answer

a) Payments for purchase of property, plant and equipment should be reported at $-5200 under INvesting activity.

b) Proceeds from the sale of equipment should be reproted at $44260 undeer investing activity.

c) Cash dividends paid should be reported at $-17450 under financing activity.

d) Redemption of bonds payable should be reprted at $-21660 under financing activity.

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