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 $126 , 192,000 243,000 $561,000 $111,000 159 , 282,000 $552,000 498,000 (72,000) $987,000 456,000 (63,000) $945,000 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, 80, eee shares authorized, 60,000 and 56,000 shares issued, respectively Retained earnings: Beginning balance Net income for month Dividends Ending balance Total stockholders' equity Total liabilities and stockholders' equity $111,000 132,000 63,eee $386,000 99, eee $405,000 $123,000 132,000 72,000 $327,000 138 , $465,000 $312,000 $288 , $192,000 108,000 (3 , ) . $270,000 $582,000 $987 , $129 , 87,000 (24 , ) $192,000 $480,000 $945,000 $125,000 192,000 243,000 $561,000 $111.00 159,000 282,000 $552,000 498,00 (72,000) $987,000 456,00 (63,60e) 5945,000 Assets Cash Accounts receivable Merchandise inventory Total current assets Plant and equipment: Production equipment Less: Accumulated depreciation Total assets Liabilities Accounts payable Short-tern debt Other accrued liabilities Total current liabilities Long-term debt Total Habilities Stockholders' Equity Common stock, no par value, B9,000 shares authorized, 60,000 and 56,000 shares issued, respectively Retained earnings: Beginning balance Net income for month Dividends Ending balance Total stockholders' equity Total liabilities and stockholders' equity $111.000 132,000 63,000 5306,000 99,000 $405,000 $123,000 132,000 72.000 $327,080 138,000 5465,000 $312,000 $288,000 $192,000 108,000 (30,000) $270,000 $582,000 $987,800 $129,000 87,800 (24.000) $192,000 $480.000 5945,000 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? Complete this question by entering your answers in the tabs below. Required A Required B 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. Show less MILLCO INC. Balance Sheets January 31 and February 28, 2020 February 28 January 31 Change Assets: $ Cash 126,000 $ 192,000 243,000 561,000 $ Accounts receivable 111,000 159,000 282,000 552,000 15,000 33,000 (39,000) S Merchandise inventory Total current assets Plant and Equipment: Production equipment Less: Accumulated depreciation Total assets 498,000 (72,000) 987,000 $ 456,000 (63,000) 945,000 42,000 (9,000) $ S (12,000) 0 (9,000) 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 111,000 $ 132,000 63,000 306,000 $ 99,000 405,000 $ 123,000 132,000 72,000 327,000 138,000 465,000 (39,000) S $ 312,000 $ 288,000 24,000 $ 192,000 $ 108,000 129,000 87,000 (24.000) 21,000 (6.000) (30.000) sign. MILLCO INC. Statement of Cash Flows For the Month Ended February 28, 2020 Cash flows from operating activities: Net income $ 108,000 Add (deduct) items not affecting cash: Depreciation expense 9,000 Increase in accounts receivable (33,000) Decrease in accounts payable (12,000) Decrease in other accrued liabilities (9,000) Decrease in merchandise inventory 39,000 $ 102,000 Net cash provided by operating activities Cash flows from investing activities: (42,000) $ Cash flows from financing activities: Sale of common stock Payment of long term debt Payment of dividends 24,000 (39,000) (30,000) Net cash flows used by financing activities Net increase in cash for the year (45,000) 15,000 $