The following transactions occurred during March 2016 for theWainwright Corporation. The company owns

and operates a wholesale warehouse.

1. Issued 39,000shares of capital stock in exchange for $390,000 in cash.

2.
Purchased equipment at a cost of $58,000. $19,000 cash was paidand a note payable was signed for the balance owed.

3.
Purchased inventory on account at a cost of $108,000. Thecompany uses the perpetual inventory system.

4.
Credit sales for the month totaled $129,000. The cost of thegoods sold was $79,000.

5. Paid $5,900 inrent on the warehouse building for the month of March.

6.
Paid $6,900 to an insurance company for fire and liabilityinsurance for a one-year period beginning April 1, 2016.

7. Paid $79,000 onaccount for the merchandise purchased in 3.

8. Collected$64,000 from customers on account.

9. Recordeddepreciation expense of $1,900 for the month on the equipment

2.

Prepare a statement of cash flows, using the direct method topresent cash flows from operating activities. Assume the cashbalance at the beginning of the month was $49,000. (Amountsto be deducted should be indicated with a minus sign.)

Question

The following transactions occurred during March 2016 for theWainwright Corporation. The company owns

and operates a wholesale warehouse.

1.	Issued 39,000shares of capital stock in exchange for $390,000 in cash.
2.	Purchased equipment at a cost of $58,000. $19,000 cash was paidand a note payable was signed for the balance owed.
3.	Purchased inventory on account at a cost of $108,000. Thecompany uses the perpetual inventory system.
4.	Credit sales for the month totaled $129,000. The cost of thegoods sold was $79,000.
5.	Paid $5,900 inrent on the warehouse building for the month of March.
6.	Paid $6,900 to an insurance company for fire and liabilityinsurance for a one-year period beginning April 1, 2016.
7.	Paid $79,000 onaccount for the merchandise purchased in 3.
8.	Collected$64,000 from customers on account.
9.	Recordeddepreciation expense of $1,900 for the month on the equipment

2.

Prepare a statement of cash flows, using the direct method topresent cash flows from operating activities. Assume the cashbalance at the beginning of the month was $49,000. (Amountsto be deducted should be indicated with a minus sign.)

WHISPERING WINDS CORP. Post-Closing Trial Balance December 31, 2016
	Debit	Credit
Cash	$22,340
Accounts Receivable	20,610
Allowance for Doubtful Accounts		$1,100
Equipment	18,400
Accumulated DepreciationâEquipment		13,800
Buildings	92,000
Accumulated DepreciationâBuildings		13,800
Land	18,400
Accounts Payable		11,380
Common Stock		82,800
Retained Earnings		48,870
	$171,750	$171,750

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1.		On February 1, Sheffield collected fees of $11,040 in advance.The company will perform $920 of services each month from February1, 2017, to January 31, 2018.
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