During March, each of the following events occurred at Frolic Park, Inc.

Required
A. Identify whether each transaction is an operating, investing, or financing activity.
B. For each event, identify the effect it had on March€™s net income and on March€™s cash flow from operations.
C. What does this problem suggest to you about the hazards of trying to manage an organization with accrual-basis accounting information only?Discuss.

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Effect onEffect on March'sMarch's Type of Activity Net Income Cash Flow Event 1. Sold $18,000 of goods on credit to customers. Received a 25% down with the balance on account. 2. Paid $500 cash for office supplies that will be u 3,000 from a customer in full payment of her 3. 4. Borrowed $80,000 from a local bank to be repaid in monthly 5. Paid rent on the office space ($1,200 per month) 6. Distributed monthly paychecks to employees totaling $13,300. account balance nstallments months of February, March, and 30% was for work performed in February and the balance interest sta in for work performed in March new Internet server equipment at a cost 8. Purchased a 3-year fire insurance policy at a total cost of n on March 9. merchandise from suppliers on at a cost $70,000 10. Collected $22,000 from customers in payment of their accounts, 80% of this amount was from sales recorded in and the balance was from March sales. four months rent in advance lat 5/00 per rom a tenant who will mo ve in on 12. Paid $45,000 to suppliers in partial payment for goods hased in #9 above 13. Sold $33.000 of dise to customers on credit. an investment in stocks and bonds for $28,000; the same amount that had been paid for it. A 3-year, 9% note receivable was in full ent. Totals for March