Prepare statement of cash flows (indirect method) using balance sheet data. Following are comparative balance sheets for Millco, Inc., at January 31 and February 28, 2014:
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Required:
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 (for example, the change in the amount of production equipment is not the result of both a purchase and sale of equipment). 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.