TCO F) 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 12 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:

# Event

1 Accounts payable decreases from $400,000 to $385,000.

2 An interest payment of $85,000 is made on a new debt issuance.

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

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

5 40,000 new shares of stock are issued near the close of the fiscal year.

6 Dividends of $12,000 are paid on Drexon company stock.

7 Capital expenditures of $35,000 are made for equipment used in day to day operations.

8 Drexon purchases 60% of a subsidiary company.

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

10 Accounts receivable decreases from $620,000 to $610,000.

11 Dividends of $6,500 are received from a stock classified as available for sale.

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

My answers are below. All my answers are wrong except for the ones marked Good. Please provide the correct answers and an explaination. Thank you in advance.

	Event	Effect on Cash	Category
1	Decrease in accounts payable	Decrease in cash	Operating
2	Interest payment on debt issuance	Decrease in cash	Operating
3	Purchase of security	Decrease in cash	Investing
4	Sale of an asset - gain	Increase in cash	Operating
5	Issuance of stock	Increase in cash	Financing		Good
6	Paid Dividends	Decrease in cash	Financing		Good
7	Capital expenses for equipment	Increase in cash	Operating
8	Purchase of stock	Increase in cash	Investing
9	Depreciation	None	None		Good
10	Decrease in accounts receivable	Increase in cash	Operating		Good
11	Received dividends	Increase in cash	Investing
12	Accrued liabilites increase	None	None