Following are comparative balance sheets for Millco Inc. at January 31 and February 28, 2023:

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 (e.g., 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 your solution.

Transcribed Image Text:

Assets Cash... MILLCO INC. Balance Sheets February 28 and January 31, 2023 February 28 Accounts receivable... Merchandise inventory Total current assets Plant and equipment: Production equipment . . . . . $126,000 192,000 243,000 $561,000 498,000 January 31 $111,000 159,000 282,000 $552,000 456,000