If we buy fixed assets on credit, how do we record it on the CF statement?

CFA Level II FRA
#1

Suppose we bought PPE of 1 million in credit in year 1, and pay the credit back in year 2. How do we record it on the cash flow statements?

Is it like:
Year 1: No cashflow change
Year 2: CFO -1million

Or:
Year 1: CFI -1million CFO +1million
Year 2: CFO -1million

Or even:
Year 1: CFI -1million CFF +1million
Year 2: CFF -1million

How would we record it properly?

#2

Properly:

#3

Thank you!!

#4

My pleasure.