The following transactions occurred during March 2021 for the Wainwright Corporation. The company owns and operates a wholesale warehouse.
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).
- Make 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 $42,000.
(Please show how you got your answers for the statement of cash flows so I better understand the material.)
Connect X Course Hero X C Get Homework Help With Chegg X Course Hero x X -> O https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mhedu.. . . . Ch 4 Exercises - Homework i Saved Help Save & Exit Submit Check my work 15 Exercise 4-16 (Algo) Statement of cash flows; directly from transactions [LO4-8] 0.4 The following transactions occurred during March 2021 for the Wainwright Corporation. The company owns and operates a wholesale points warehouse. eBook 1. Issued 32,000 shares of common stock in exchange for $320,000 in cash. 2. Purchased equipment at a cost of $44,000. $12,000 cash was paid and a note payable to the seller was signed for the balance owed. Print 3. Purchased inventory on account at a cost of $94,000. The company uses the perpetual inventory system. References 4. Credit sales for the month totaled $122,000. The cost of the goods sold was $72,000. 5. Paid $5,200 in rent on the warehouse building for the month of March. 6. Paid $6,200 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2021. 7. Paid $72,000 on account for the merchandise purchased in 3. 8. Collected $57,000 from customers on account 9. Recorded depreciation expense of $1,200 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 balance at the beginning of the month was $42,000. Mc Graw Hill Type here to search O 10:37 PM 10/1/2020Connect X Course Hero X C Get Homework Help With Chegg X Course Hero * + X -> O https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mhedu.. . . . Ch 4 Exercises - Homework i Saved Help Save & Exit Submit Check my work 15 Complete this question by entering your answers in the tabs below. 0.4 points Required 1 Required 2 Analyze each transaction by indicating the cash effect and classify each as a financing, investing, and/or operating activity (a eBook 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.) Print Operating Investing Financing References 1 . CO CO NO UI A W N $ o $ o $ 0 = Mc Graw Hill ducation Type here to search O EI 10:37 PM 10/1/2020Connect X Course Hero X C Get Homework Help With Chegg X Course Hero x X -> O https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mhedu.. . . . Ch 4 Exercises - Homework i Saved Help Save & Exit Submit Check my work 15 WAINWRIGHT CORPORATION Statement of Cash Flows For the Month Ended March 31, 2021 Cash flows from operating activities: 0.4 points eBook Print References Net cash flows from operating activities $ 0 Cash flows from investing activities Net cash flows from investing activities 0 Cash flows from financing activities: Net cash flows from financing activities Net increase in cash Cash and cash equivalents, March 1 Cash and cash equivalents, March 31 $ 0 Noncash investing and financing activities: Cost of equipment Cash paid Note issued $ Mc Graw Hill ducation Type here to search 10:38 PM 10/1/2020
