1. Sources and uses of cash In addition to recognizing what type of activity transactions are being described, it is important to recognize whether a transaction is a source or a use of cash. In the following table, determine whether each transaction is a source or a use of cash. Source of Cash Use of Cash Gates Co. incurred total operating expenses of $834,000 and total cash payments for expenses that equaled o $781,000. Montalvo Inc. generated $1,478,000 in net sales revenue and collected $1,384,000 in cash for sales made during the year. o O Sherman Co. paid preferred dividends of $36,000. Winston Technologies repurchased common stock for $260,000. Marshall Co. issued new common stock for $317,000. O O O O O Douglas Inc. purchased equipment for $39,000. Freeman Inc. sold property for $84,000