Dear Sir/Madam

this is one question Required 2 , please see the both pic ... in second pic error is showing in red . please explain

regards

The following transactions occurred during March 2018 for the Wainwright Corporation. The company owns and operates a wholesale warehouse. 1. Issued 35,000 shares of capital stock in exchange for $350,000 in cash. 2. Purchased equipment at a cost of $50,000. $15,000 cash was paid and a note payable was signed for the balance owed. 3. Purchased inventory on account at a cost of $100,000. The company uses the perpetual inventory system. 4. Credit sales for the month totaled $125,000. The cost of the goods sold was $75,000 5. Paid $5,500 in rent on the warehouse building for the month of March. 6. Paid $6,500 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2018. 7. Paid $75,000 on account for the merchandise purchased in 3. 8. Collected $60,000 from customers on account. 9. Recorded depreciation expense of $1,500 for the month on the equipment. Required: 1. Analyze each transaction by indicating the cash effect and classify each as a financing, investing, and/or operating activity (a transaction can represent more than one type of activity). 2. Prepare a statement of cash flows, using the direct method to present cash flows from operating activities. Assume the cash balance at the beginning of the month was $45,000. X Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a statement of cash flows, using the direct method to present cash flows from operating activities. Assume the cash balance at the beginning of the month was $45,000. (Amounts to be deducted should be indicated with a minus sign.) WAINWRIGHT CORPORATION Statement of Cash El Statement of Cash Flows For the Month Ended March 31, 2018 Cash flows from operating activities Collections from customers $ Payment of rent Payment of one-year insurance premium Payment to suppliers of merchandise for sale 60,000 (5,500) (6,500) (75,000) Complete this question by entering your answers in the tabs below. Required 1 Required 2 2.25 points Prepare a statement of cash flows, using the direct method to present cash flows from operating activities. Assume the cash balance at the beginning of the month was $45,000. (Amounts to be deducted should be indicated with a minus sign.) WAINWRIGHT CORPORATION Statement of Cash Flows For the Month Ended March 31, 2018 Cash flows from operating activities Collections from customers $ Payment of rent Payment of one-year insurance premium Payment to suppliers of merchandise for sale 60,000 (5,500) (6,500) (75,000) $ (27,000) Net cash flows from operating activities Cash flows from investing activities Purchase of equipment (15,000) (15,000) Net cash flows from investing activities Cash flows from financing activities Issuance of common stock 350,000 Net cash flows from financing activities 350,000 308,000 Cash and cash equivalents, March 31 $ 308,000 $ 35,000 X Noncash investing and financing activities: Cost of equipment Cash paid Note issued $ 35,000