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
Assets
Cash	$	29,400			$	25,900
Accounts receivable		44,800				37,100
Merchandise inventory		56,700				65,800
Total current assets	$	130,900			$	128,800
Plant and equipment:
Production equipment		116,200				106,400
Less: Accumulated depreciation		(16,800	)			(14,700	)
Total assets	$	230,300			$	220,500
Liabilities
Accounts payable	$	25,900			$	28,700
Short-term debt		30,800				30,800
Other accrued liabilities		14,700				16,800
Total current liabilities	$	71,400			$	76,300
Long-term debt		23,100				32,200
Total liabilities	$	94,500			$	108,500
Stockholders' Equity
Common stock, no par value, 28,000 shares authorized, 21,000 and 19,600 shares issued, respectively	$	72,800			$	67,200
Retained earnings:
Beginning balance	$	44,800			$	30,100
Net income for month		25,200				20,300
Dividends		(7,000	)			(5,600	)
Ending balance	$	63,000			$	44,800
Total stockholders' equity	$	135,800			$	112,000
Total liabilities and stockholders' equity	$	230,300			$	220,500

Required:

1. 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.
2. Prepare a statement of cash flows that explains above changes?

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:
Sale of common stock
Payment of long term debt
Payment of dividends
Net cash flows used by financing activities		0
Net increase in cash for the year		$0