Award: 1.66 points January 31 $ 18,500 26,500 47 000 $ 92,000 76,000 (10.500) $157,500 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 Assets February 28 Cash Accounts receivable $ 21,000 Merchandise Inventory 32,000 40.500 Total current assets $ 93,500 Plant and equipment: Production equipment 83,000 Less: Accumulated depreciation (12.000) Total assets $164,500 Llabilities Accounts payable $ 18,500 Short-term debt 22,000 Other accrued liabilities 10.500 Total current abilities $ 51,000 Long-term debt 16,500 Total liabilities $ 67,500 Stockholders' Equity Common stock, no par value, 20,000 shares authorized, 15,000 and 14,000 shares issued, respectively $ 52,000 Retnined earnings: $ 32,000 Beginning balance 18,000 Not Income for month Dividends 5.000 $145,000 Ending balance $97.000 Total stockholders' equity $164,500 Total liabilities and stockholders' equity $ 20,500 22,000 12.000 $ 54,500 23,000 $ 77,500 $ 48,000 $ 21,500 14,500 14.000 $32.000 $ 80.000 $157,500 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? Calculate the change that occurred in cash during the month. You may assume that the change in each balance sheet an is due to a single event (for example, the change in the amount of production equipment is not the result of both a purch 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 February 28 and January 31 amounts of each balance sheet item, Show MILLCO INC. Balance Sheets January 31 and February 28, 2020 February 28 January 31 Change Assets $ 21,000 $ 32,000 40,500 93,500 $ 18,500 26,500 47.000 92,000 $ Cash Accounts receivable Merchandise inventory Total current assets Plant and equipment: Production equipment Less: Accumulated depreciation Total assets 83,000 78,000 (12.000) (10,500) 164,500 $ 157,500 $ $ 18,500 $ 22,000 10,500 51,000 16,500 67,500 $ 20,500 22,000 12,000 54,500 23,000 77,500 $ $ Liabilities Accounts payable Short-term debt Other accrued liabilities Total current liabilities Long-term debe Total liabilities Stockholders' Equity Common stock Retained earnings Beginning balance Net income for month Dividends Ending balance Total stockholders' equity Total liabilities and stockholders' equity $ $2,000 $ 48.000 $ 32.000 $ 21,500 18,000 14,500 (5,000) (4.000) 45,000 $ 32.000 97,000 $ 80,000 $ 157,500 $ $ Required
