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 $ 33, 600 51,200 64,800 $149,600 $ 29,600 42,400 75, 200 $147,200 132,800 (19,200) $263, 200 121,600 (16,800) $ 252,000 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 Common stock, no par value, 32,000 shares authorized, 24,000 and 22,400 shares issued, respectively Retained earnings: Beginning balance Net income for month Dividends Ending balance Total stockholders' equity Total liabilities and stockholders' equity $ 29,600 35,200 16,800 $ 81,600 26,400 $ 108,000 $ 32,800 35,200 19, 200 $ 87,200 36,800 $ 124,000 $ 83,200 $ 76,800 $ 51,200 28,800 (8,000) $ 72,000 $ 155, 200 $263,200 $ 34,400 23, 200 (6,400) $ 51,200 $ 128,000 $ 252,000 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? MILLCO INC. Balance Sheets January 31 and February 28, 2020 February 28 January 31 Change Assets Cash $ 29,600 33,600 $ 51,200 42,400 64,800 75,200 $ 149,600 $ 147,200 Accounts receivable Merchandise inventory Total current assets Plant and equipment: Production equipment Less: Accumulated depreciation 132,800 (19,200) 263,200 $ 121,600 (16,800) 252,000 Total assets $ $ 32,800 35,200 19,200 29,600 $ 35,200 16,800 81,600 $ 26,400 108,000 $ $ 87,200 Liabilities Accounts payable Short-term debt Other accrued liabilities Total current liabilities Long-term debt Total liabilities Stockholders' Equity Common stock Retained earnings: Beginning balance Net income for month 36,800 $ 124,000 $ 83,200 $ 76,800 $ 51,200 $ 34,400 28,800 23,200 (8,000) (6,400) 72,000 $ 51,200 155,200 $ 128,000 $ 252,000 Dividends Ending balance Total stockholders' equity Total liabilities and stockholders' equity $ $ 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 shoul sign.) MILLCO INC. Statement of Cash Flows For the Month Ended February 28, 2020 Cash flows from operating activities: Add (deduct) items not affecting cash: Cash flows from investing activities: Cash flows from financing activities:
