The following transactions occurred during March 2021 for the Wainwright Corporation. The company owns and operates a wholesale warehouse. 1. Issued 42,000 shares of common stock in exchange for $420,000 in cash. 2. Purchased equipment at a cost of $64,000. $22,000 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 $114,000. The company uses the perpetual inventory system. 4. Credit sales for the month totaled $132,000. The cost of the goods sold was $82,000. 5. Paid $6,200 in rent on the warehouse building for the month of March. 6. Paid $7,200 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2021. 7. Paid $82,000 on account for the merchandise purchased in 3. 8. Collected $67,000 from customers on account. 9. Recorded depreciation expense of $2,200 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 $52,000. 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 $ 0 = 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 $52,000. (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: $ 0 Net cash flows from operating activities Cash flows from investing activities: 0 Net cash flows from investing activities Cash flows from financing activities: 0 Net cash flows from financing activities Net increase in cash 0 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