Question

10.00 points Following are comparative balance sheets for Millco, Inc., at January 31 and February 28, 2017 MILLCO, INC Balance Sheets February 28 and January 31, 2017 February 28 Assets Cash Accounts receivable Merchandise inventory 54,600 48,100 68,900 122.200 $243,100 $239,200 83,200 105300 Total current assets Plant and equipment 215,800 197,600 Less. Accumulated depreciation (31200)27.300) $427,700 Total assets $409,500 Liabilities Accounts payable Short-term debt Other accrued liabilities s 48,100$ 53,300 57, 200 31,200 57,200 Total current iabilises Long-term debt 2,600 42,900 $175,500 141 59.800 Total Eabilities $201,500 Stockholders Equity Common słock no par value, 52,000 shares authorized, 39,000 and 36,40 Retained eamings $135,200 124 800 5 83 200 55 900 shares issued, respectively Beginning balance Net income for month Dividend:s Ending balance 37.700 10,400 46,800 117,000 Total stockholders' equity Total liabilities and owners' equity $427,700$ 2200$208 000 $409,500 Required: a. Calculate the change that occurred in cash during the month. You may assume that the change in each balance sheet amount s the retained earnings section of the batance sheet is, in and of itself, data to enter the ditterence between the February 28 and January 31 amounts of each balance sheet item an analysis of the change in the retained earnings account tor MILLCO, INC Balance Sheets January 31 and F February 28 January 31Change Assets $ 54,600 S 48,100 68,900 Cash 83,200 Merchandise inventory Total current assets Plant and equipment 105300 122200 S 243,100 S 239,200

Answer 1

a) Change in the Cash during the month is shown as follows:-

MILLCO. INC
Balance Sheet
January 31 and February 28,2017 (Amounts in $)
Assets	February 28 (A)	January 31 (B)	Change (A-B)
Cash	54,600	48,100	6,500
Accounts Receivable	83,200	68,900	14,300
Merchandise Inventory	105,300	122,200	(16,900)
Total Current Assets	243,100	239,200
Plant and Equipment
Production Equipment	215,800	197,600	18,200
Less: Accumulated Depreciation	(31,200)	(27,300)	(3,900)
Total Assets	427,700	409,500
Liabilities
Accounts Payable	48,100	53,300	(5,200)
Short Term Debt	57,200	57,200	0
Other Accrued Liabilities	27,300	31,200	(3,900)
Total Current Liabilities	132,600	141,700
Long Term Debt	42,900	59,800	(16,900)
Total Liabilities	175,500	201,500
Shareholders' Equity
Common Stock	135,200	124,800	10,400
Retained Earnings
Beginning Balance	83,200	55,900
Net income for month	46,800	37,700	9,100
Dividends	(13,000)	(10,400)	2,600
Ending Balance	117,000	83,200
Total Shareholders' Equity	252,200	208,000
Total Liabilities and Shareholders' Equity	427,700	409,500

b) Statement of Cash Flows is shown as follows:

MILLCO. INC
Statement of Cash Flows
For the Month Ended February 28,2017
Cash Flow from Operating Activities:
Net Income	46,800
Add (Deduct) items not affecting cash:
Add: Depreciation for the month	3,900
Less: Increase in Accounts Receivable	(14,300)
Add: Decrease in Inventory	16,900
Less: Decrease in Accounts Payable	(5,200)
Less: Decrease in Other Accrued Liabilities	(3,900)
Net Cash flows from Operating Activities (A)		44,200
Cash flows from the Investing Activities:
Purchase of Production Equipment (B)		(18,200)
Cash flows from the Financing Activities:
Repayment of long term debt	(16,900)
Issue of Common Stock	10,400
Dividends Paid	(13,000)
Net cash used in Financing Activities (C)		(19,500)
Net Increase/(Decrease) in cash (A+B+C)		6,500
Add: Beginning Cash Balance		48,100
Ending Cash Balance		54,600