Question 6

Company XYZ had the following transactions during the year:

1. Increase in accounts receivable

2. Purchased equipment

3. Sold land

4. Depreciation of truck

5. Increase in accounts payable

6. Decrease in notes payable

7. Issuance of common stock

8. Gain on sale of land

Classify each transaction as (1) operating, investing, or financing, and (2) increase or decrease in cash. You can also classify a transaction as a noncash activity.