1. Issued 30000 shares of capital stock in exchange for $300000 in cash.2. Purch

1. Issued 30000 shares of capital stock in exchange for $300000 in cash.2. Purchased equipment at a cost of $40000. $10000 cash was paid and a note payable was signed for the balance owed.3. Purchased inventory on account at a cost of $90000. The company uses the perpetual inventory system.4. Credit sales for the month totaled $120000. The cost of the goods sold was $70000.5. Paid $5000 in rent on the warehouse building for the month of March.6. Paid $6000 to an insurance company for fire and liability insurance for a one-year period beginning April 1 2011.7. Paid $70000 on account for the merchandise purchased in 3.8. Collected $55000 from customers on account.9. Recorded depreciation expense of $1000 for the month on the equipment.Required:1.
Analyze each transaction and classify each as a financing investing
and/or operating activity (a transaction can represent more than one
type of activity). In doing so also indicate the cash effect of each
if any. If there is no cash effect simply place a check mark (v) in the
appropriate column(s).Example:Financing Investing Operating1. $3000002.
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 $40000.