Following are comparative balance sheets for Millco, Inc., at January 31 and February 28, 2014:

MILLCO, INC. Balance Sheets February 28 and January 31, 2014
Assets	February 28			January 31
Cash	$	54,600		$	48,100
Accounts receivable		83,200			68,900
Merchandise inventory		105,300			122,200
Total current assets	$	243,100		$	239,200
Plant and equipment:
Production equipment		215,800			197,600
Less: Accumulated depreciation		(31,200	)		(27,300)
Total assets	$	427,700		$	409,500
Liabilities
Accounts payable	$	48,100		$	53,300
Short-term debt		57,200			57,200
Other accrued liabilities		27,300			31,200
Total current liabilities	$	132,600		$	141,700
Long-term debt		42,900			59,800
Total liabilities	$	175,500		$	201,500
Stockholders' Equity
Common stock, no par value, 52,000 shares authorized, 39,000 and 36,400 shares issued, respectively	$	135,200		$	124,800
Retained earnings:
Beginning balance	$	83,200		$	55,900
Net income for month		46,800			37,700
Dividends		(13,000	)		(10,400)
Ending balance	$	117,000		$	83,200
Stockholders Equity	$	252,200		$	208,000
Total liabilities and owners' equity	$	427,700		$	409,500

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). (Hints: What is the purpose of the statement of cash flows? How is this purpose accomplished?) 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? (Amounts to be deducted should be indicated by minus sign. )