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Following are selected balance sheet accounts of Headland Bros. Corp. at December 31,2025 and
2024 , and the increases or decreases in each account from 2024 to 2025 . Also presented is
selected income statement information for the year ended December 31,2025 , and additional
information. Additional information: 1. During 2025 , equipment costing $45 , 000 was sold for
cash. 2. Accounts receivable relate to sales of merchandise. 3. During 2025, $20 , 200 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.

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Following are selected balance sheet accounts of Headland Bros- Corp-.docx

  • 1. Following are selected balance sheet accounts of Headland Bros. Corp. at December 31,2025 and 2024 , and the increases or decreases in each account from 2024 to 2025 . Also presented is selected income statement information for the year ended December 31,2025 , and additional information. Additional information: 1. During 2025 , equipment costing $45 , 000 was sold for cash. 2. Accounts receivable relate to sales of merchandise. 3. During 2025, $20 , 200 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.