Exercise 4-16 (Static) Statement of cash flows; directly from transactions [LO4-8] The following transactions occurred during March 2024 for the Wainwtight Corporation. The company owns and operates a wholesale warehouse. 1. Lsued 30,000 shares of common stock in exchange for $300,000 in cash. 2. Purchased equipment at a cost of $40,000.$10,000 cash was paid and a note payable to the seller was signed for the balance owed. 3. Purchased inventory on account ot a cost of $90,000. The company uses the perpetual inventory system. 4. Credit sales for the month totaled $120,000. The cost of the goods sald was $70,000. 5. Paid $5.000 in tent on the warehouse building for the month of March. 6. Paid 56,000 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2024, 7. Paid $70.000 on occount for the merchandise purchased in 3 . 8. Collected $55,000 from customers on account 9. Recorded depreciation expense of $1,000 for the month on the equipment: Required: 1. Analyze each transaction by ind cating the cash effect and classify each as a financing, investing, andlor operating activity fa transaction can reprosent more than one type of activity). 2. Prepare a statement of cash fiows, using the direct method to present cash flows from operating activities. Assume the cash. balence at the beginning of the month was $40,000. Complete this question by entering your answers in the tabs below. Ahalyze esch transaction by indicating the cash effect and dassify edch as a finsncing, imvesting, and/or operating activity (a transaction can represent more than one type of activity). Note Aincunts to be deducted srould be indicated with a minus sign. If there is no cash effect, leave cell blank. 9. Recorded depreciation expense of $1,000 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 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 casi balance at the beginning of the month was $40,000. Complete this question by entering your answers in the tabs below. Analyze each transaction by indicating the cash effect and classify each as a finaneing, investing, and/or operating activity (a transaction can represent more than one type of activity). Note: Amounts to be deducted should be indicated with a minus sign. If there is no cash effect, leave cell blank. Prepare a statement of cash flows, using the direct method to present cash flows from operating activities. Assume the cash Prepare a statement of cash fiows, using the difect