2 part question

Following are comparative balance sheets for Millco Inc. at January 31 and February 28, 2020: MILLCO INC. Balance Sheets February 28 and January 31, 2020 February 28 January 31 $ 25,200 38,400 48,600 $112,200 $ 22,200 31,800 56,400 $110,400 99,600 (14,400) $197,400 91,200 (12,600) $189,000 $ 22,200 26,400 12,600 Assets Cash Accounts receivable Merchandise inventory Total current assets Plant and equipment: Production equipment Less: Accumulated depreciation Total assets Liabilities Accounts payable Short-term debt Other accrued liabilities Total current liabilities Long-term debt Total liabilities Stockholders' Equity Common stock, no par value, 24,000 shares authorized, 18,000 and 16,800 shares issued, respectively Retained earnings: Beginning balance Net income for month Dividends Ending balance Total stockholders' equity Total liabilities and stockholders' equity $ 61,200 19,800 $ 81,000 $ 24,600 26,400 14,400 $ 65,400 27,600 $ 93,000 $ 62,400 $ 57,600 $ 38,400 21,600 (6,000) $ 54,000 $116,400 $197,400 $ 25,800 17,400 (4,800 $ 38,400 $ 96,000 $189,000 Required: a. Calculate 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). Because the retained earnings section of the balance sheet is, in and of itself, an analysis of the change in the retained earnings account for the month, the row for net income and dividends should be entered as the February amount and not the change. 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. b. Prepare a statement of cash flows that explains above changes? Complete this question by entering your answers in the tabs below. Required A Required B Complete this question by entering your answers in the tabs below. Required A Required B Calculate 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). Because the retained earnings section of the balance sheet is, in and of itself, an analysis of the change in the retained earnings account for the month, the row for net income and dividends should be entered as the February amount and not the change. 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. Show less Change MILLCO INC. Balance Sheets January 31 and February 28, 2020 February 28 January 31 Assets Cash $ 25,200 $ 22,200 Accounts receivable 38,400 31,800 Merchandise inventory 48,600 56.400 Total current assets S 112,200 $ 110,400 Plant and equipment: Production equipment 99,600 91,200 Less: Accumulated depreciation (14.400) (12,600) Total assets $ 197,400 $ 189,000 $ Liabilities Accounts payable Short-term debt - Other accrued liabilities Total current liabilities Long-term debt 22,200 $ 24,600 26,400 26,400 12.600 14.400 61,200 $ 65.400 19,800 27,600 81,000 $ 93,000 S Total liabilities S s 62.400 S 57,600 Stockholders' Equity Common stock Retained earnings: Beginning balance Net income for month Dividends Ending balance Total stockholders' equity Total liabilities and stockholders' equity S 38,400 $ 25,800 21,600 17,400 (6.000) (4.800) ) S 54.000 $ 38,400 $ 116,400 S 96,000 $ 189,000 Complete this question by entering your answers in the tabs below. Required A Required B Prepare a statement of cash flows that explains above changes? (Amounts to be deducted should be indicated by a minus sign.). MILLCO INC. Statement of Cash Flows For the Month Ended February 28, 2020 Cash flows from operating activities: Net income Add (deduct) items not affecting cash: Depreciation expense Increase in accounts receivable Decrease in merchandise inventory Decrease in accounts payable Decrease in other accrued liabilities $ 0 Cash flows from investing activities: Purchases of production equipment Cash flows from financing activities: Payment of dividends Payment of long term debt Sale of common stock 0 Net cash flows used by financing activities Net increase in cash for the year $ 0