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The following transactions occurred during March 2021 for the Wainwright Corporation. The company owns and operates a wholesale warehouse 1. Issued 38,000 shares of common

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The following transactions occurred during March 2021 for the Wainwright Corporation. The company owns and operates a wholesale warehouse 1. Issued 38,000 shares of common stock in exchange for $380,000 in cash. 2. Purchased equipment at a cost of $55,000 $18,000 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 $106,000. The company uses the perpetual Inventory system. 4. Credit sales for the month totaled 5128,000. The cost of the goods sold was $78,000 5. Paid $5,800 in rent on the warehouse building for the month of March. 6. Paid $6,800 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2021 7. Paid $78,000 on account for the merchandise purchased in 3. 8. Collected $63,000 from customers on account. 9. Recorded depreciation expense of $1,800 for the month on the equipment. Required: Assessment Tool Frame 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 $48,000. 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 $48,000. Complete this question by entering your answers in the tabs below. Required 1 Required 2 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.) Operating Investing Financing 1. 2 3 4 5 6. 7. 8. 9. $ 0 $ 0 $ O (Required 1 Required 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 $48,000. (Amounts to be deducted should be indicated with a minus sign.) WAINWRIGHT CORPORATION Statement of Cash Flows For the Month Ended March 31, 2021 Cash flows from operating activities: 2.40 Net cash flows from operating activities Cash flows from investing activities: $ 0 Net cash flows from investing activities Cash flows from financing activities: 0 0 0 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 $ 0

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