Analyzing Noncash Transactions

Pier2 Company purchased equipment with a useful life of 10 years for $14,400. Pier2 paid one-third down and signed a two-year, interest-bearing note for the balance. Indicate how the transaction would be reported in the statement of cash flows and/or related disclosure.

• Note: Indicate a subtraction in the statement of cash flows with a negative sign in the Amount column.
• Note: If an item is not included in the statement of cash flows, enter zero in the Amount column and "N/A" in the Cash Flow Section column.

Item	Amount	Cash Flow Section
Purchase of equipment partially with a note payable	Answer	AnswerOperating activities sectionInvesting activities sectionFinancing activities sectionDisclosureN/A
Purchase of equipment partially with cash	Answer	AnswerOperating activities sectionInvesting activities sectionFinancing activities sectionDisclosureN/A