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, eee shares authorized, 24,60e and 22,499 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 26,490 $188,888 $ 32,800 35,200 19, 200 $ 87,200 36,800 $124,000 $ 83,200 $ 76,800 $ 51,200 28,800 (8,000) $ 72,00 $ 155,200 $263,200 $ 34,400 23, 200 (6,400) $ 51,200 $128,000 $252,600 Required: .. 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 S s 33,600 51,200 64.800 $ 149,600 29,600 42,400 75,200 147,200 S Cash Accounts receivable Merchandise inventory Total current assets Plant and equipment: Production equipment Less: Accumulated depreciation Total assets 132.800 (19,200) S 263,200 121,600 (16,800) 252,000 S s S 29,600 35,200 16.800 S 81,600 26,400 $ 108,000 32.800 35,200 19,200 87,200 36,800 124,000 S S 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 S 83,200 S 76,800 S 51,200 28.800 (8,000) S 72,000 $ 155,200 34,400 23,200 (6,400) 51,200 128,000 252,000 S S $ MILLCO INC. Statement of Cash Flows For the Month Ended February 28, 2020 Cash flows from operating activities: Add (deduct) items not affecting cash: $ O Cash flows from investing activities: Cash flows from financing activities: 0 S 0
