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 $ 63,000 96,000 121,500 $ 280,500 $ 55,500 79,500 141,000 $ 276,000 249,000 (36,000) $493,500 228,000 (31,500) $ 472,500 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, 60,000 shares authorized, 45,000 and 42,000 shares issued, respectively Retained earnings: Beginning balance Net income for month Dividends Ending balance Total stockholders' equity Total liabilities and stockholders' equity $ 55,500 66,000 31,500 $153,000 49,500 $ 202,500 $ 61,500 66,000 36,000 $ 163,500 69,000 $ 232,500 $156,000 $144,000 $ 96,000 54,000 (15,000) $135,000 $291,000 $493,500 $ 64,500 43,500 (12,000) $ 96,000 $ 240,000 $ 472500 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? February 28 January 31 Change $ $ Assets Cash Accounts receivable Merchandise inventory Total current assets Plant and equipment: Production equipment Less: Accumulated depreciation Total assets 63,000 96,000 121,500 280,500 55,500 79,500 141,000 276,000 $ $ 249,000 (36,000) 493,500 $ 228,000 (31,500) 472,500 $ $ 55,500 66,000 31,500 153,000 49,500 202,500 61,500 66,000 36,000 163,500 69,000 232,500 $ $ $ $ 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 $ 156,000 $ 144,000 $ $ 96,000 54,000 (15,000) 135,000 291,000 64,500 43,500 (12,000) 96,000 240,000 472,500 $ $ $ $ $ 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