The following transactions occurred during March 2016 for the Wainwright Corporation. The company owns and operates a wholesale warehouse.

1.	Issued 30,000 shares of capital 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 was signed for the balance owed.
3.	Purchased inventory on account at 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 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, 2016.
7.	Paid $70,000 on account 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 and classify each as a financing, investing, and/or operating activity (a transaction can represent more than one type of activity). In doing so, also indicate the cash effect of each. (Amounts to be deducted should be indicated with a minus sign. If there is no cash effect, leave cell blank.)

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 $40,000. (Amounts to be deducted should be indicated with a minus sign.)

Operating Investing Financing $300,000 30,000 2. 3. 4 5. (40,000) (5,000) (6,000) 55,000 (26,000) $ (70,000) 8. (40,000) $ 330,000 =$ 264,000