80.2K

Verified Solution

Link Copied!

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 $ 54,600 83,200 185,380 $243,100 $ 48,100 68,900 122,200 $239, 280 215,800 31, 200) $427,700 197,600 (27,300) $409,500 Assets Cash Accounts receivable Merchandise inventory Total current assets Plant and equipment: Production equipment Less: Accumulated depreciation Total assets Liabilities Accounts payable Short-term debt Other accrued liabilities Total current Habilities Long-term debt Total liabilities Stockholders' Equity Common stock, no par value, 52,000 shares authorized, 39,000 and 36,400 shares Issued, respectively Retained earnings Beginning balance Net Income for month Dividends Ending balance Total stockholders' equity Total Habilities and stockholders equity $ 48,100 57,200 27,300 $132,600 42,900 $175,500 $ 53,300 57,200 31, 200 $141,700 59,800 5201,500 $135,200 $124,800 $ 83,200 46,300 (13,000 $112.000 $252,200 $427,700 $ 55,900 37,700 (20.400 58200 $ 200,000 $400, 500 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. Prav 3 of 6 Next > Required A Required B 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. Show less Change MILLCO INC Balance Sheets January 31 and February 28, 2020 February 21 January 31 Assets Cash $ 54 600 $ 48,100 Accounts receivable 63200 68.900 Merchandise inventory 105,300 122 200 Total current assets 5 243,100 $ 239,200 Plant and equipment Production equipment 215 800 197 600 Less. Accumulated depreciation 31200) 127 3001 Total assets $427.700409 500 Llabilities Accounts payable Short-term debit Other accrued liabilities Total current liabilities Long-term debit Total abilities Stockholders' Equity Common stock Retained earnings Beginning balance Not Income for month $ 68.100 5 53.300 57 200 57 200 27.300 31 200 $ 132.600 5 141.700 12.900 59 300 5 175.500 5201 500 $ 135 200 5 124 300 $ 33.2005 55.500 37700 & Poor Ned> O M here to search 3 4 MILLCO INC. Balance Sheets January 31 and February 28, 2020 February 28 January 31 Change Assets Cash $ 54,600 $ 83,200 105,300 $ 243.100 $ 48.100 68,900 122 200 239,200 Accounts receivable Merchandise inventory Total current assets Plant and equipment Production equipment Less: Accumulated depreciation Total assets 215,800 197,600 (31 200) (27,300) $427.700 S 409.500 S 48.100 S 53,300 57 200 57 200 27.300 31 200 132,600 S 141.700 42.900 59.800 175 500 $ 201,500 $ $ Liabilities Accounts payable Short-term debt Other accrued liabilities Total current liabilities Long-term debt Total liabilities Stockholders' Equity Common stock Retained earnings Beginning balance Net income for month Dividends Ending balance Total stockholders' equity Total liabilities and stockholders' equity $ 135,200 S 124,800 5 83,200 $ 55 900 37,700 (10.400) 83.200 208,000 409.500 46,800 (13,000) 117,000 $ 252 200 S $ $ $ Required B > 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 $ 54,600 83,200 105,300 $243,100 $ 45,180 68,900 122,200 $239,200 215,800 (31,200) $427,700 197,600 (27.300) $409,500 Assets Cash Accounts receivable Merchandise inventory Total current assets Plant and equipment: Production equipment Less: Accumulated depreciation Total assets Liabilities Accounts payable Short-term debt Other accrued liabilities Total current llabilities Long-term debt Total liabilities Stockholders' Equity Contmon stock, no par value, $2,000 shares authorized, 39,000 and 36,400 shares issued, respectively Retained earnings Beginning balance Net income for month Dividends Ending balance Total stockholders' equity Total liabilities and stockholders' equity $ 43,100 57,200 27,300 $132,600 42,900 $175,500 $ 53,300 57,200 31,200 $141,700 59,880 $ 201,500 $135,200 $124,860 $ 33,200 46,000 (13,000) $117,000 5252, 200 $427,700 $ 55,900 37,700 (30,400) $3,200 $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 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? Total liabilities and stockholders' equity $427,700 $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 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 earings 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 Accumulated depreciation Beginning balance Cash Decrease in accounts payable $ 0 Cash flows from financing activities MILLCO INC. Statement of Cash Flows For the Month Ended February 28, 2020 Cash flows from operating activities: Add (deduct) items not affecting cash: Accumulated depreciation Beginning balance Cash 0 Decrease in accounts payable Cash flows from financing activities 0 S 0

Answer & Explanation Solved by verified expert

See Answer