The following transactions occurred during March $2024$ for the Wainwright Corporation. The company owns and operates a wholesale warehouse.

Issued $30,000$ shares of common stock in exchange for $$300,000$ in cash.

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.

Purchased inventory on account at a cost of $$90,000.$ The company uses the perpetual inventory system.

Credit sales for the month totaled $$120,000.$ The cost of the goods sold was $$70,000.$

Paid $$5,000$ in rent on the warehouse building for the month of March.

Paid $$6,000$ to an insurance company for fire and liability insurance for a one$-$year period beginning April $1,2024.$

Paid $$70,000$ on account for the merchandise purchased in $3.$

Collected $$55,000$ from customers on account.

Recorded depreciation expense of $$1,000$ for the month on the equipment.

Required:

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$).$

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.$

Complete this question by entering your answers in the tabs below.

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$).$

Note: Amounts to be deducted should be indicated with a minus sign. If there is no cash effect, leave cell blank.