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.

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.)

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.) Answer is not complete WAINWRIGHT CORPORATION Statement of Cash Flows For the Month Ended March 31, 2016 Cash flows from operating activities 55.000 Collections from customers (70,000) Payment to suppliers of merchandise for sale (5,000) Payment of rent (6,000) Payment of one-year insurance premium (26,000) Net cash flows from operating activities Cash flows from investing activities (10,000) Purchase of equipment (10,000) Net cash flows from investing activities Cash flows from financing activities 300,000 Issuance of common stock 300,000 Net cash flows from financing activities Net increase in cash 264,000 Cash and cash equivalents, March 31 264,000 Noncash investing and financing activities 40,000 Cost of equipment (10,000) Cash paid Note issued 30,000