For each event below, determine if it should be classified as an operating activity, investing activity, or financing activity. Then determine the increase or decrease to the cash account. Transaction 1. Declared cash dividends of $21,000 during the current period. Dividends payable on January 1 was $1,500, the December 31 balance was $2,300. 2. Interest income on the income statement for the current period is $22,000. Interest receivable on January 1 was $2,700, the December 31 balance was $2,250. 3. Issued $1,000,000, 10-year, 10% bonds at 102. 4. Sales on account for the current period amount to $160,000. The January 1 balance in accounts receivable was $95,000, the December 31 balance was $106,000. 5. Purchased equipment for $215,000 cash. 6. Sold 1,000 shares of $20 par common stock for cash at $29. 7. Salary expense on the income statement for the current period is $151,500. Salary payable on Type of Activity Effect on Cash