Following are comparative balance sheets for Millco, Inc., at January 31 and February 28, 2011:

Required:
Prepare a statement of cash flows that explains the change that occurred in cash during the month. You may assume that the change in each balance sheet amount is due to a single event (for example, the change in the amount of production equipment is not the result of both a purchase and sale of equipment). Use the space to the right of the January 31 data to enter the difference between the February 28 and January 31 amounts of each balance sheet item; these are the amounts that will be in yoursolution.

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MILLCO, INC. Balance Sheets February 28 and January 31, 2011 February 28 January 31 Assets Cash 64,000 81,000 .$187,000 42,000 37,000 53.000 94,000 receivable Merchandise inventory . Total current assets. . Plant and equipment Production equipment ...166,000 (24,000) $329,000 152,000 21,000) 315,000 Total assets Liabilitiess Accounts payable... Short-term debt Other accrued liabilities 37,000 41,000 44,000 24,000 $102,000 $109,000 46,000 $155,000 44,000 21,000 Total current liabilities . . 33,000 .. . . $135,000 Total liabilities . Owners' Equity Common stock, no par value, 40,000 shares authorized, 96,000 30,000 and 28,000 shares issued, respectively.$104,000 Retained earnings: 29,000 (8,000) 64,000 (10.000) $315,000