Analyze each of the four transactions Ernies Electronics had with Berts Bargain House from the perspective of Ernie's Electronics. Select the 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 a separate noncash activities note.

	Transactions	Activities
1.	Ernie sold Bert land, originally purchased for $180,000, at a sales price of $195,000, resulting in a gain on sale of land of $15,000.
2.	Ernie borrowed $100,000 from Bert, signing a three-year note payable.
3.	Ernie purchased $1 million in common stock in Bert's Bargain House through a private placement.
4.	Ernie received a dividend of $40,000 from the common stock investment in Bert's Bargain House.

Financing activities

Financing activities, Operating activities

Investing activities

Investing activities, Financing activities

Investing activities, Operating activities

Operating activities

Noncash activities