Analysis of Longmind Company’s accounts revealed the following activity for Equipment, with descriptions added for clarity of analysis. How would these two transactions be reported for cash flow purposes? Note the section of the statement of cash flow, if applicable, and if the transaction represents a cash source, cash use, or noncash transaction.

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Account balance, beginning of year Purchase of equipment this year, for cash Purchase of equipment this year, with note payable Account balance, end of year Account balance, beginning of year • Purchase of equipment this year, for cash • Purchase of equipment this year, with note payable Account balance, end of year Equipment $ 88,000 29,500 34,750 152,250 Equipment $ 88,000 29,500 34,750 152,250