For each of the transactions in E1-31B, tell whether the transaction was an operating, investing, or financing activity.

In E1-31B, 1. Joe Evans used $100,000 of personal savings in exchange for common stock, and the business borrowed $50,000 from the bank to start the business.

2. The business purchased a small building for $75,000.

3. The business purchased $10,500 worth of inventory.

4. The business paid operating expenses of $1,315 the first month.

5. Evans Bait & Tackle, Inc., sold $5,250 of its inventory to customers for $7,875.