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    Cash flow sheet

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    Please see the attached file for full problem description.

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    Prepare statement of cash flows (indirect method) using balance sheet data. Presented
    below are comparative balance sheets for Millco, Inc., at January 31 and February
    28, 2004.

    MILLCO, INC.
    Balance Sheets
    February 28 and January 31, 2004
    February 28 January 31
    Assets
    Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 42,000 $ 37,000
    Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64,000 53,000
    Merchandise inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81,000 94,000
    Total current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $187,000 $184,000
    Plant and equipment:
    Production equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166,000 152,000
    Less: Accumulated depreciation . . . . . . . . . . . . . . . . . . . . . (24,000) (21,000)
    Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $329,000 $315,000
    Liabilities
    Short-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 44,000 $ 44,000
    Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37,000 41,000
    Other accrued liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,000 24,000
    Total current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $102,000 $109,000
    Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33,000 46,000
    Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $135,000 $155,000
    Owners' Equity
    Common stock, no par value, 40,000 shares authorized,
    30,000 and 28,000 shares issued, respectively . . . . . . . . . . . . $104,000 $ 96,000
    Retained earnings:
    Beginning balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 64,000 $ 43,000
    Net income for month . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,000 29,000
    Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (10,000) (8,000)
    Ending balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 90,000 $ 64,000
    Total owners' equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $194,000 $160,000
    Total liabilities and owners' equity . . . . . . . . . . . . . . . . . . . . . . . . $329,000 $315,000

    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

    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.

    © BrainMass Inc. brainmass.com October 9, 2019, 4:29 pm ad1c9bdddf
    https://brainmass.com/business/statement-of-cash-flows/cash-flow-sheet-33634

    Attachments

    Solution Preview

    Statement of Cash Flow
    indirect method
    Net Income 36,000
    - Increase in A/R -11,000
    + Decrease in inventory 13,000
    ...

    $2.19