Ernie's Electronics had the following transactions with Bert's Bargain House: 1. Ernie bought land from Bert for

Question:

Ernie's Electronics had the following transactions with Bert's Bargain House:
1. Ernie bought land from Bert for $85,000. The land was originally purchased for $60,000, resulting in a gain on sale of land for Bert of $25,000.
2. Ernie loaned $50,000 to Bert obtaining a three-year note receivable.
3. Ernie sold $100,000 in to Bert's Bargain House through a private placement.
4. Ernie paid a of $4,000 on the to Bert's Bargain House.
Required:
Analyze each of the four transactions from the perspective of Ernie's Electronics. Indicate in which section of the statement of cash flows each of these items would be reported for Ernie's Electronics: operating activities (indirect method), investing activities, financing activities, or noncash activities footnote.
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