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The following transactions occurred during March 2021 for the Wainwright Corporation. The company owns and operates a wholesale warehouse. 1. Issued 41,000 shares of common stock in exchange for $410,000 in cash. 2. Purchased equipment at a cost of $62,000. $21,000 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 $112,000. The company uses the perpetual inventory system. 4. Credit sales for the month totaled $131,000. The cost of the goods sold was $81,000. 5. Paid $6,100 in rent on the warehouse building for the month of March. 6. Paid $7,100 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2021. 7. Paid $81,000 on account for the merchandise purchased in 3. 8. Collected $66,000 from customers on account. 9. Recorded depreciation expense of $2,100 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 $51,000. Operating Investing Financing $ 410,000 (6,100) (7,100)| (81,000)| 66,000 8. $ (28,200) $ 0 $ 410,000 = 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 ............ 0 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

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