Following are selected balance sheet accounts of Sheridan Br

Following are selected balance sheet accounts of Sheridan Bros. Corp. at December 31, 2017 and 2016, and the increases or decreases in each account from 2016 to 2017. Also presented is selected income statement information for the year ended December 31, 2017, and additional information.

2017

2016

Increase
(Decrease)

2017

2016

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

Open Show Work

Selected balance sheet accounts
Assets		2017		2016		Increase (Decrease)
Accounts receivable		$34,100			$24,100			$10,000
Property, plant, and equipment		275,900			249,500			26,400
Accumulated depreciation—plant assets		(179,200	)		(167,800	)		(11,400	)
Liabilities and stockholders’ equity		2017		2016		Increase
Bonds payable		$ 49,500			$46,300			$3,200
Dividends payable		8,000			4,900			3,100
Common stock, $1 par		21,800			19,000			2,800
Additional paid-in capital		9,100			3,100			6,000
Retained earnings		103,300			90,300			13,000
Selected income statement information for the year ended December 31, 2017:
Sales revenue		$156,100
Depreciation		38,400
Gain on sale of equipment		14,500
Net income		31,300

Solution

Activity (a) Payments for purchase of property, plant, and equipment. Investing =26400+44800 = $        71,200 (b) Proceeds from the sale of equipment. Investing =14500+44800-(38400-11400) = $        32,300 (c) Cash dividends paid. Financing = 31300-13000 = $        18,300 (d) Redemption of bonds payable. Financing = 19900-3200 = $        16,700