The following transactions occurred during March 2021 for the Wainwright Corporation. The company owns and operates a wholesale warehouse 2 4. 1. 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. 3. 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 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. 2021. 7. Paid $70,000 on account for the merchandise purchased in 3. 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 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 $40,000. Required 1 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. 5. 6. 7. 8. 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.) WAINWRIGHT CORPORATION Statement of Cash Flows For the Month Ended March 31, 2021 Cash flows from operating activities: Net cash flows from operating activities Cash flows from investing activities: Net cash flows from investing activities 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 Noncash investing and financing activities: Cost of equipment Cash paid Note issued