Cut #1 – Down the center of the cake (vertically) leaving two equal halves.
Cut #2 – Across the center of the cake (horizontally) leaving four equal slices.
Cut #3 – Through the middle edge of the cake slicing all four of the pieces in equal halves, leaving eight equal slices (four equal tops and four equal bottoms).

Eighty-eight. From then on, they all have the letter “N”.

The two people were a husband and an expectant wife, who gave birth to her baby.

Horse back riding. The words are horse and riding spelled backwards.