Required information [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 $85,000 cash from each of the two shareholders to form the corporation, in addition to $2,500 in accounts receivable, $6,300 in equipment, a van (equipment) appraised at a fair value of $14,000, and $1,450 in supplies. Gave the two owners each 600 shares of common stock with a par value of $1 per share. b. Purchased a vacant store for sale in a good location for $410,000, making a $82,000 cash down payment and signing a 10-year mortgage note from a local bank for the rest. c. Borrowed $55,000 from the local bank on a 10 percent, one-year note. d. Purchased food and paper supplies costing $11,200 in March; paid cash. e. Catered four parties in March for $4,700; $1,700 was billed and the rest was received in cash. f. Sold food at the retail store for $17,150 cash; the food and paper supplies used cost $10,930. (Hint: Record two the revenue effect separate from the expense effect.) g. Received a $470 telephone bill for March to be paid in April. h. Paid $413 in gas for the van in March. i. Paid $7,280 in wages to employees who worked in March. j. Paid a $350 dividend from the corporation to each owner. k. Purchased $55,000 of equipment (refrigerated display cases, cabinets, tables, and chairs) and renovated and decorated the new store for $22,500 (added to the cost of the building); paid cash. 2. Identify operating, investing, and financing activities affecting cash flows. Include the direction and amount of the effect. (Cash outflows should be indicated with a minus sign. If there is no effect on the statement of cash flows, select "No effect") Transaction Type of Activity Direction and Amount of Effect a. + 85000 b. C. d. 82,000 55,000 11,200 3,000 17,150 e. Financing Investing Financing Operating Operating Operating No effect Operating Operating Financing Investing f. g. h. 413 i. 7,280 j. 350 k. 77,500