Drexon Corp., which follows U.S. GAAP, uses the direct method to report its cash flows. The CFO is assessing the impact on cash flows of 4 events during the fiscal year. Specify which category each event falls under (under the direct method) and note whether it increases cash, decreases cash, or has no impact on cash.

1. A gain of $8,200 is booked on the sale of an asset.

2. Depreciation and amortization expense totaling $50,000 is booked.

3. Drexon purchases a trading security which it classifies as noncurrent.

4. Accrued liabilities increase from $245,000 to $250,000.