Question

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 $ 58,800 89,600 113,400 $261,800 $ 51,800 74,200 131,600 $257,600 232,400 (33,600) $460, 600 212,800 (29,400) $441,000 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 liabilities Long-term debt Total liabilities Stockholders' Equity Common stock, no par value, 56,000 shares authorized 42,000 and 39,200 shares issued, respectively Retained earnings: Beginning balance Net income for month Dividends Ending balance Total stockholders' equity Total liabilities and stockholders' equity $ 51,800 61,600 29,400 $142,800 46, 200 $189,000 $ 57,400 61,600 33,600 $152,600 64,400 $ 217,000 $145,600 $134,400 $ 89,6001 50,400 (14,000) $126,000 $ 271,600 $ 460, 600 $ 60,200 40,600 (11,200) $ 89,600 $ 224,000 $441,000

Answer 1

MILLCO INC
Balance sheet
January 31 and February 28, 2020
	Feb-28	Jan-31	Change
Assets
Cash	58800	51800	7000
Accounts receivables	89600	74200	-15400
Merchandice inventory	113400	131600	18200
Total Current Assets	261800	257600
Plant and equipements	232400	212800	-49000
Production Equipments	-33600	-29400	33600
Less: Accumulated Depritiation	460600	441000
Total Assets
Liabilities
Accounts payable	51800	57400	-5600
Short term debt	61600	61600	0
Other accrued liabilities	29400	33600	-4200
Total Current liabilities	142800	152600
Long tern debt	46200	64400	-18200
Total Liabilities	189000	217000
Stock holder's Equity
Common stock	145600	134400	11200
Retained earning
Beginning balance	89600	60200
Net income for month	50400	40600	50400
Dividend	-14000	-11200	-14000
Ending balance	126000	89600
Total Stock holder's Equity	271600	224000
Total Liabilities and stock holders equity	460600	441000

MILLCO INC
Statement of Cash flow
For the month ended February 28,2020
Cashflow from operating Activity
Net income		50400
Depritiation	33600
Increase in Accounts receivable	-15400
Decrease in inventory	18200
Decrease in Accounts payable	-5600
Decrease in Other Accrued liabilities	-4200
Net Cashflow from Operating Activity		77000
Cashflow from Investing Activity
Purchase of Plant and Equipment		-49000
Cashflow from Financing Activity
Issued of common equity	11200
Long term debt paid	-18200
dividend paid	-14000
Net Cashflow from financing Activity		-21000
Net Cash flow		7000
Opening Cash Balance		51800
Closing Cash Balance		58800