Check my work 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 $ 42,000 64,000 81,000 $ 197,000 $ 37,000 53,000 94,000 $184,000 166,000 (24,000) $329,000 152,000 (21,000) $315,000 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 Couton stock, no per value, 40,000 shares authorized, 30,000 and 28,000 shares issued, respectively Retained earnings: Beginning balance Net income for month Dividends Ending balance Total stockholders' equity Total liabilities and stockholders' equity $ 37,000 44.000 21,000 $102,000 33,000 $135,000 $ 41,000 44,000 24,000 $109,000 46,000 $ 155,000 $104,000 $ 96,000 $ 64,000 36,000 (10,000) $ 90,000 $ 194,000 $329,000 $ 43,000 29,000 (8,000) $ 64,000 $160,000 $315,000 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? Check my work 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 $ 42,000 64,000 81,000 $ 197,000 $ 37,000 53,000 94,000 $184,000 166,000 (24,000) $329,000 152,000 (21,000) $315,000 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 Couton stock, no per value, 40,000 shares authorized, 30,000 and 28,000 shares issued, respectively Retained earnings: Beginning balance Net income for month Dividends Ending balance Total stockholders' equity Total liabilities and stockholders' equity $ 37,000 44.000 21,000 $102,000 33,000 $135,000 $ 41,000 44,000 24,000 $109,000 46,000 $ 155,000 $104,000 $ 96,000 $ 64,000 36,000 (10,000) $ 90,000 $ 194,000 $329,000 $ 43,000 29,000 (8,000) $ 64,000 $160,000 $315,000 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
