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 $ 58,800 89,600 113,400 $261,800 $ 51,800 74,200 131,600 $257,600 232,400 (33,600) $460, 600 212,800 (29,400) $441,000 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, 56,000 shares authorized 42,000 and 39,200 shares issued, respectively Retained earnings: Beginning balance Net income for month Dividends Ending balance Total stockholders' equity Total liabilities and stockholders' equity $ 51,800 61,600 29,400 $142,800 46, 200 $189,000 $ 57,400 61,600 33,600 $152,600 64,400 $ 217,000 $145,600 $134,400 $ 89,6001 50,400 (14,000) $126,000 $ 271,600 $ 460, 600 $ 60,200 40,600 (11,200) $ 89,600 $ 224,000 $441,000 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? Cond 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 Show less w January 31 Change $ 12 MILLCO INC. Balance Sheets January 31 and February 28, 2020 February 28 Assets Cash 58,800 Accounts receivable 89,600 Merchandise inventory 113,400 Total current assets $ 261,800 Plant and equipment: Production equipment 232,400 Less: Accumulated depreciation (33,600) Total assets 460,600 51,800 74,200 131,600 257,600 $ 212,800 (29,400) 441,000 $ Llabilities $ Accounts payable Short-term debt Other accrued liabilities Total current liabilities Long-term debt Total liabilities Stockholders' Equity Common stock Retained earninne 51,800 61,600 29.400 142,800 46,200 189,000 57,400 61,600 33,600 152,600 64,400 217,000 $ $ $ $ 145,600 $ 134.400 113,400 261,800 $ 1 31,00 257,600 3 Total current assets Plant and equipment Production equipment Less: Accumulated depreciation Total assets 232,400 11 212,800 (33,600)||(29,400) 460,600 S 441,000 51,800 57400 61.600 33,800 61,600 29,400 142,800 46,200 189,000 | 162,600 64.400 217.000 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 Ending balance Total stockholders' equity Total liabilities and stockholders equity $ 145,600 $ 134,400 89,600 50,400 (14,000) 126,000 $ 271.600 $ 60,200 40,600 (11.200) $ 89,600 S 224,000 $ 441,000 Required B > 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: Saved Add (deduct) items not affecting cash: Cash flows from investing activities: Cash flows from financing activities:
