Exercise 11-3A Determine proper classification (LO11-1) 1 Analysis of an income statement balance sheet, and additional Information from the accounting records of Gadgets, Inc., reveals the following items, 2 points Required: Select the section of the statement of cash flows in which each of these items would be reported: operating activities (indirect method), Investing activities, financing activities, or a separate noncash activities note. Activities Pest Reference Items 1. Purchase of a patent 2 Depreciation expense. + 3. Decrease in accounts receivable. 4. Issuance of a note payable 6. Increase in inventory 6. Colection of notes receivable 7. Purchase of equipment 8 Exchange of long-term assets, 9. Decrease in accounts payable. 10. Payment of dividends