I need help with the following:
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.
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                                   MILLCO, INC.
                                  Balance Sheets
                            February 28 and January 31, 2004
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                                                      February 28  January 31
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  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

  Owner's 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 owner's equity..........................  $194,000    $160,000

  Total liabilities and owner's equity..............  $329,000    $315,000
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Questions:
 
  a.  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 (e.g., the change
in the amount of production equipment is not the result of both a
purchase and sale of equipment).