6. When a company buys a fleet of used helicopters from a government auction, the activity is considered: a. operating b. financing c. investing 7. It was a good year for XYZ. How is it that XYZ earned $1000 but does not have $1000 more in cash? a. Las Vegas b. Depreciation c. Inventory 8. Davis is investigating a company in which he may want to invest (as an equity investor). He notices they have an abundance of assets and very little liabilities. What component of equity may worry Davis? a. relatively large amount of retained earnings b. relatively large amount of minority interests C. relatively small amount of paid-in-capital