AT Corp. opened for business on April 1st. Listed below are the transactions for AT Corp. for the month of April:

April 1 Issued common stock in exchange for $250,000 cash. April 1 Purchased office equipment for $17,500 cash. April 1 Borrowed $20,000 from Venn Bank and signed a 10% note. Interest and principal to be paid in 12 months. April 5 Paid $4,000 rent in advance for the art gallery for the next two months. April 10 Purchased art supplies from Tacky Art Co. on account for $12,200. April 12 Received $5,300 from a customer who commissioned a piece of custom art to be completed by the end of the year. April 15 Paid miscellaneous office expenses totaling $285 in cash. April 17 Billed customers $3,400 for art classes provided in March. April 19 Paid $3,600 to Tacky Art Co. April 25 Received $2,200 from customers on account. April 30 Recorded $3,800 in salaries for the month of April. Paychecks will be disbursed to employees on May 2nd.

3) Prepare a statement of cash flows. Prepare closing entries.

4) In a one-page memo, provide an explanation to the management team on April's financial performance.