Required information E3-16 Preparing an Income Statement, Identifying Cash Flow Effects, and Analyzing Results LO3-5 [The following information applies to the questions displayed below.) Lisa Frees and Amelia Ellinger have been operating a catering business for several years. In March, the partners plan to expand by opening a retail sales shop. They have decided to form the business as a corporation called Traveling Gourmet Inc. The following transactions occurred in March: a. Received $94.000 cash from each of the two shareholders to form the corporation, in addition to $3,400 in accounts receivable. $8,100 in equipment, a van (equipment) appraised at a fair value of $15,800, and $1.900 in supplies. Gave the two owners each 780 shares of common stock with a par value of $1 per share. b. Purchased a vacant store for sale in a good location for $500,000, making a $100,000 cash down payment and signing a 10-year mortgage from a local bank for the rest c. Borrowed $64.000 from the local bank on a 10 percent, one-year note. d. Purchased and used food and paper supplies costing $13,630 in March: pald cash. e. Catered four parties in March for $5,600, 51880 was billed, and the rest was received in cash, 1. Made and sold food at the retail store for $12,600 cash. 9. Received a $560 telephone bill for March to be paid in April. h. Paid $503 in gas for the van in March. I Paid $9.080 In wages to employees who worked in March. J. Paid a $440 dividend from the corporation to each owner k Purchased $64,000 of equipment (refrigerated display cases, cabinets, tables, and chairs) and renovated and decorated the new store for $27,000 (added to the cost of the building; paid cash. E3-16 Part 2 2. Identify operating (O). Investing (), and financing (A) activities affecting cash flows. Include the direction and amount of the effect. (Select "NE" if there is no effect.) Statement Direction Transaction of Cash and Flows Amount of Effect a F b. c. F d. fo e. O f O 9 NE h To O 1 F k