MILLCO INC. Balance Sheets February 28 and January 31, 2020 February 28 January 31 $ 37,800 57,600 72,900 $168,300 $ 33,300 47,700 84,600 $ 165,600 149,400 (21,600) $ 296,100 136,800 (18,900) $ 283,500 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, 36,000 shares authorized, 27,000 and 25,200 shares issued, respectively Retained earnings: Beginning balance Net income for month Dividends Ending balance Total stockholders' equity Total liabilities and stockholders' equity $ 33, 300 39,600 18,900 $ 91,800 29, 700 $121,500 $ 36,900 39,600 21,600 $ 98,100 41,400 $139,500 $ 93,600 $ 86,400 $ 57,600 32,400 (9,000) $ 81,000 $174,600 $ 296,100 $ 38,700 26,100 (7,200) $ 57,600 $144,000 $ 283,500 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). 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? 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. January 31 Change $ January 31 and February 28, 2020 February 28 Assets Cash 37,800 Accounts receivable 57,600 Merchandise inventory 72,900 Total current assets $ 168,300 Plant and equipment: Production equipment 149,400 Less: Accumulated depreciation (21,600) Total assets $ 296,100 33,300 47,700 84,600 165,600 $ 136,800 (18,900) 283,500 $ 33,300 $ 39,600 18,900 91,800 $ 29,700 121,500 $ 36,900 39,600 21,600 98,100 41,400 139,500 $ $ 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 $ 93,600 $ 86,400 $ $ 57,600 32,400 (9,000) 81,000 174,600 38,700 26,100 (7,200) 57,600 144,000 283,500 $ $ $ $ $ Prepare a statement of cash flows that explains above changes? (Amounts to be deducted should be indicated by a minus sign.) 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