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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
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 $ 46,200 70,400 89, 100 $ 205,700 $ 40, 700 58,300 103, 400 $202,400 182,600 (26,400) $361,900 167,200 (23, 100) $346,500 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, 44,000 shares authorized, 33,000 and 30,800 shares issued, respectively Retained earnings: Beginning balance Net income for month Dividends Ending balance Total stockholders' equity Total liabilities and stockholders' equity $ 40,700 48,400 23, 100 $112,200 36,300 $ 148,500 $ 45, 100 48, 400 26,400 $119,900 50,600 $170,500 $114,400 $105,600 $ 70,400 39,600 (11,000) $ 99,000 $213,400 $361,900 $ 47,300 31,900 (8,800) $ 70,400 $176,000 $346,500 Check my work Retained earnings: Beginning balance Net income for month Dividends Ending balance Total stockholders' equity Total liabilities and stockholders' equity $ 70,400 39,600 (11,000) $ 99,000 $213,400 $361,900 $ 47,300 31,900 (B, 800) $ 70,400 $176,000 $346,500 1.66 points eBook Print References 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? 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 should be indicated by a minus sign.) MILLCO INC. Statement of Cash Flows For the Month Ended February 28, 2020 Track Fliefmmraratin itine. Check Prepare a statement of cash flows that explains above changes? (Amounts to be deducted should be indicated by a minus sign.) 1.66 points eBook 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 Decrease in merchandise inventory Decrease in accounts payable Decrease in other accrued liabilities Print References 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 increase in cash for the year 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 $ 46,200 70,400 89, 100 $ 205,700 $ 40, 700 58,300 103, 400 $202,400 182,600 (26,400) $361,900 167,200 (23, 100) $346,500 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, 44,000 shares authorized, 33,000 and 30,800 shares issued, respectively Retained earnings: Beginning balance Net income for month Dividends Ending balance Total stockholders' equity Total liabilities and stockholders' equity $ 40,700 48,400 23, 100 $112,200 36,300 $ 148,500 $ 45, 100 48, 400 26,400 $119,900 50,600 $170,500 $114,400 $105,600 $ 70,400 39,600 (11,000) $ 99,000 $213,400 $361,900 $ 47,300 31,900 (8,800) $ 70,400 $176,000 $346,500 Check my work Retained earnings: Beginning balance Net income for month Dividends Ending balance Total stockholders' equity Total liabilities and stockholders' equity $ 70,400 39,600 (11,000) $ 99,000 $213,400 $361,900 $ 47,300 31,900 (B, 800) $ 70,400 $176,000 $346,500 1.66 points eBook Print References 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? 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 should be indicated by a minus sign.) MILLCO INC. Statement of Cash Flows For the Month Ended February 28, 2020 Track Fliefmmraratin itine. Check Prepare a statement of cash flows that explains above changes? (Amounts to be deducted should be indicated by a minus sign.) 1.66 points eBook 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 Decrease in merchandise inventory Decrease in accounts payable Decrease in other accrued liabilities Print References 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 increase in cash for the year
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