Following are comparative balance sheets for Millco, Inc., at January 31 and February 28, 2017:

MILLCO, INC.
Balance Sheets
February 28 and January 31, 2017
	February 28				January 31
Assets
Cash	$	33,600			$	29,600
Accounts receivable		51,200				42,400
Merchandise inventory		64,800				75,200
Total current assets	$	149,600			$	147,200
Plant and equipment:
Production equipment		132,800				121,600
Less: Accumulated depreciation		(19,200	)			(16,800	)
Total assets	$	263,200			$	252,000
Liabilities
Accounts payable	$	29,600			$	32,800
Short-term debt		35,200				35,200
Other accrued liabilities		16,800				19,200
Total current liabilities	$	81,600			$	87,200
Long-term debt		26,400				36,800
Total liabilities	$	108,000			$	124,000
Stockholders' Equity
Common stock, no par value, 32,000 shares authorized, 24,000 and 22,400 shares issued, respectively	$	83,200			$	76,800
Retained earnings:
Beginning balance	$	51,200			$	34,400
Net income for month		28,800				23,200
Dividends		(8,000	)			(6,400	)
Ending balance	$	72,000			$	51,200
Total stockholders' equity	$	155,200			$	128,000
Total liabilities and owners' equity	$	263,200			$	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? (Amounts to be deducted should be indicated by a minus sign. )

MILLCO, INC Balance Sheets January 31 and February 28, 2017 Change 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 Retained earnings Beginning balance Net income for month Dividends Ending balance Total stockholders' equity Total liabilities and stockholders' equity February 28 January 31 $ 33,600 S 29,600 42,400 75,200 S 149,600 147,200 51,200 64,800 132,800 (19,200) S 263,200 $ 252,000 121,600 (16,800) $29,600 S 32,800 35,200 19,200 $81,600S 87,200 36,800 $ 108,000$ 124,000 35,200 16,800 26,400 $ 83,200 76,800 $ 51,200 34,400 23,200 (6,400) $ 72,000 51,200 $155,200$ 128,000 $ 252,000 28,800 (8,000) MILLCO, INC Statement of Cash Flows For the Month Ended February 28, 2017 Cash flows from operating activities: Add (deduct) items not affecting cash: Cash flows from investing activities: Cash flows from financing activities