The following transactions occurred during March 2024 for the Wainwright Corporation. The company owns and operates a wholesale warehouse.

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.
3. Purchased inventory on account at a cost of $94,000. The company uses the perpetual inventory system.
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, 2024.
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.

Complete this question by entering your answers in the tabs below. 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). Note: Amounts to be deducted should be indicated with a minus sign. If there is no cash effect, leave cell blank. 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. Note: Amounts to be deducted should be indicated with a minus sign