Prepare statement of cash flows (indirect method) using balance sheet data. Following are comparative balance sheets for Millco, Inc., at January 31 and February 28, 2014:

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). 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 yoursolution.

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MILLCO, INC. Balance Sheets February 28 and January 31, 2014 February 28 January 31 Assets 106,000 188,000 Plant and equipment 304,000 Liabilities 88,000 48,000 Long-term debt. .. .66,000 92,000 Stockholders' Equity Common stock, no par value, 80,000 shares authorized, Retained earnings Beginning balance Net income for month .... 58,000 0,000 (16,000