Exercise 11-3 Determine proper classification (LO11-1) of an income statement, balance sheet, and additional information from the accounting records of Gadgets, Inc., reveals the following items. Required: Select the section of the statement of cash flows in which each of these items would be reported: operating activities (indirect method), investing activit noncash activities note ies, financing aclvities, or a separ tems 1. Purchase of a patent. 2. Depreciation expense 4. Issuance of a note payable 5. Increase in inventory 6. Collection of notes receivable. 7. Purchase of equipment. 8. Exchange of long-term assets. 9. Decrease in accounts payable. 10. Payment of dividends. Type here to search