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Calculate the change that occurred in cash duriny 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. p. Prepare a statement of cash flows that explains above changes?

Calculate the change that occurred in cash duriny 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. p. Prepare a statement of cash flows that explains above changes?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Following are comparative balance sheets for Millco Inc. at January 31 and February 28, 2020: MILLCO INC. Balance Sheets February 28 and January 31, 2020 February 28 January 31 Assets $ 25,200 38,400 48,600 $112,200 $ 22,200 31,800 56,400 $110,400 Cash Accounts receivable Merchandise inventory Total current assets Plant and equipment: Production equipment Less: Accumulated depreciation 99,600 (14,400) $197,400 91, 200 (12,600) Total assets $189,000 Liabilities Accounts payable $ 22,200 26,400 12,600 $ 24,600 26,400 14,400 $ 65,400 27,600 $ 93,000 Short-term debt Other accrued liabilities Total current liabilities $ 61,200 19,800 $ 81,000 Long-term debt Total liabilities Stockholders' Equity Common stock, no par value, 24,000 shares authorized, 18,000 and 16,800 shares issued, respectively Retained earnings: $ 62,400 $ 57,600 Beginning balance Net income for month $ 25,800 $ 38,400 21,600 (6,000) $ 54,000 $116,400 17,400 (4,800) $ 38,400 $ 96,000 Dividends Ending balance Total stockholders' equity
Transcribed Image Text:Following are comparative balance sheets for Millco Inc. at January 31 and February 28, 2020: MILLCO INC. Balance Sheets February 28 and January 31, 2020 February 28 January 31 Assets $ 25,200 38,400 48,600 $112,200 $ 22,200 31,800 56,400 $110,400 Cash Accounts receivable Merchandise inventory Total current assets Plant and equipment: Production equipment Less: Accumulated depreciation 99,600 (14,400) $197,400 91, 200 (12,600) Total assets $189,000 Liabilities Accounts payable $ 22,200 26,400 12,600 $ 24,600 26,400 14,400 $ 65,400 27,600 $ 93,000 Short-term debt Other accrued liabilities Total current liabilities $ 61,200 19,800 $ 81,000 Long-term debt Total liabilities Stockholders' Equity Common stock, no par value, 24,000 shares authorized, 18,000 and 16,800 shares issued, respectively Retained earnings: $ 62,400 $ 57,600 Beginning balance Net income for month $ 25,800 $ 38,400 21,600 (6,000) $ 54,000 $116,400 17,400 (4,800) $ 38,400 $ 96,000 Dividends Ending balance Total stockholders' equity
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? Complete this question by entering your answers in the tabs below. Required A Required B 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 Aloxt
Transcribed Image Text: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? Complete this question by entering your answers in the tabs below. Required A Required B 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 Aloxt
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