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

1. Issued 36,000 shares of common stock in exchange for $360,000 in cash.
2. Purchased equipment at a cost of $52,000. $16,000 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 $102,000. The company uses the perpetual inventory system.
4. Credit sales for the month totaled $126,000. The cost of the goods sold was $76,000.
5. Paid $5,600 in rent on the warehouse building for the month of March.
6. Paid $6,600 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2024.
7. Paid $76,000 on account for the merchandise purchased in 3.
8. Collected $61,000 from customers on account.
9. Recorded depreciation expense of $1,600 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 $46,000.