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    Prepare statement of cash flows (indirect method) - Millco

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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, 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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