Prepare statement of cash flows (indirect method) using balance sheet data Following are comparative I#lance sheets for Millco, Inc., at January 31 and February 28, 2020: MILLCO, INC. Balance Sheets January 31 and February 28, 2020 Assets: Cash Accounts receivable Merchandise inventory Total current assets Plant and Equipment: Production equipment Less: Accumulated depreciation Total assets Feb. 28 $126,000 192,000 243,000 $561,000 Jan. 31 $111,000 159,000 282,000 $552,000 $498,000 (72,000) $987,000 $456,000 (63,000) $945,000 Liabilities: Accounts payable Short-term debt Other accrued liabilities Total current liabilities Long-term debt Total liabilities $111,000 132,000 63,000 $306,000 99,000 $405,000 $123,000 132,000 72,000 $327,000 138,000 $465,000 $312,000 $288,000 Stockholders' Equity: Common stock, no par value, 80,000 shares authorized, 60,000 and 56,000 shares issued, respectively Retained earnings: Beginning balance Net income for the month Dividends Ending balance Total stockholders' equity Total liabilities and stockholders' equity $192,000 108,000 (30,000) $ 270,000 $ 582,000 $ 987.000 $129,000 87,000 (24,000) $192,000 $480,000 $945.000 Required: Prepare a statement of cash flows that explains 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?) 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; these are the amounts that will be in your solution