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Garrison Corporation has the following transactions:
1. Dividends are paid to the shareholders.
2. A utility bill for July is paid in August.
3. A new warehouse facility is purchased.
4. Principal payments on outstanding debt are paid.
5. Employee wages are paid.
6. Forty-five units of inventory are sold for $100 each.
7. Common stock is issued for $230,000 in cash.
8. A delivery van used for 5-years is sold for $12,000, which is its book value.
Problem 1: Which of the above transaction(s) are examples of operating activities?
Option 1: 2,3,5
Option 2: 5,6,8
Option 3: 2,3,5,6,8
Option 4: 2,5,6
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