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Prepare statement of cash flows (indirect method) - Millco

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, 2004 January 31, 2004
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
Required:
Prepare a statement of cash flows using the indirect method

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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
Increase Activity
February 28, 2004 January 31, 2004 (Decrease)
Assets
Cash $42,000 $37,000 5,000
Accounts receivable 64,000 53,000 11,000 Operating
Merchandise inventory 81,000 94,000 -13,000 Operating
Total current assets $187,000 $184,000
Plant and equipment:
Production equipment 166,000 152,000 14,000 Investing
Less: Accumulated depreciation (24,000) (21,000) -3,000 Operating
Total assets $329,000 $315,000

Liabilities
Short-term debt $44,000 $44,000 - Financing
Accounts payable 37,000 41,000 -4,000 Operating
Other accrued liabilities 21,000 24,000 -3,000 Operating
Total current liabilities $102,000 $109,000

Long-term debt 33,000 46,000 -13,000 Financing
Total liabilities ...

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