The No-Ash Coal Company recorded the following transactions. Indicate how each would be treated on a statement of changes in financial position, assuming that funds are defined as the cash balance. If the transaction involves a source or use of cash, indicate the amount that would appear on the statement as a result of the transaction. Each transaction may be identified as one of the following:

a. A source of cash.

b. A use of cash.

c. An income statement adjustment that has no effect on cash.

d. A transaction that has no effect on cash because it involves changes only in non-cash items.

e. A transaction that represents neither a source of cash nor an application of cash.

The transactions were as follows. The company:

(1) Paid a dividend on preferred stock paid in cash, $25,000.

(2) Purchased raw materials costing $87,000 on credit.

(3) Sold an old truck for $300 that cost $2,000 and was 80 percent depreciated.

Loss recognized on the sale amounted to $100.

(4) Received $280,000 in payments on accounts receivable.

(5) Purchased a new machine with a list price of $27,000. Received a discount of 10 percent for paying cash.

(6) Acquired a new building with fair market value of $200,000 by issuing $200,000 in long-term notes to the builder.