The following transactions occurred during March 2021 for the Wainwright Corporation. The company owns and operates a wholesale warehouse.

1. Issued 43,000 shares of common stock in exchange for $430,000 in cash.
2. Purchased equipment at a cost of $66,000. $23,000 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 $116,000. The company uses the perpetual inventory system.
4. Credit sales for the month totaled $133,000. The cost of the goods sold was $83,000.
5. Paid $6,300 in rent on the warehouse building for the month of March.
6. Paid $7,300 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2021.
7. Paid $83,000 on account for the merchandise purchased in 3.
8. Collected $68,000 from customers on account.
9. Recorded depreciation expense of $2,300 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 $53,000.

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.
				=

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 $53,000. (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