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please help with this (and explaination) thank you very much. The following transactions occurred during March 2021 for the Wainwright Corporation. The company owns and
please help with this (and explaination)
The following transactions occurred during March 2021 for the Wainwright Corporation. The company owns and operates a wholesale warehouse. 1. Issued 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 at a cost of $90,000. The company uses the perpetual irwentory system 4. Credit sales for the month totaled $120.000. The cost of the goods sold was $70,000 5. Paid $5,000 in rent on the warehouse building for the month of March. 6. Paid $6,000 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2021. 7 Paid $70,000 on account for the merchandise purchased in 3 8 Collocted $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 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 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). (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 balance at the beginning of the month was $40,000. (Amounts to be deducted should be indicated with a minus sign.) thank you very much.
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