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
Assets
Cash	$	33,600			$	29,600
Accounts receivable		51,200				42,400
Merchandise inventory		64,800				75,200
Total current assets	$	149,600			$	147,200
Plant and equipment:
Production equipment		132,800				121,600
Less: Accumulated depreciation		(19,200	)			(16,800	)
Total assets	$	263,200			$	252,000
Liabilities
Accounts payable	$	29,600			$	32,800
Short-term debt		35,200				35,200
Other accrued liabilities		16,800				19,200
Total current liabilities	$	81,600			$	87,200
Long-term debt		26,400				36,800
Total liabilities	$	108,000			$	124,000
Stockholders' Equity
Common stock, no par value, 32,000 shares authorized, 24,000 and 22,400 shares issued, respectively	$	83,200			$	76,800
Retained earnings:
Beginning balance	$	51,200			$	34,400
Net income for month		28,800				23,200
Dividends		(8,000	)			(6,400	)
Ending balance	$	72,000			$	51,200
Total stockholders' equity	$	155,200			$	128,000
Total liabilities and stockholders' equity	$	263,200			$	252,000

Required:

1. 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.
2. Prepare a statement of cash flows that explains above changes?