Reference no: EM132514317

The Dec. 31, 2011, balance sheet of Tybee Corporation is provided below in millions

Assets

Cash $24

Account Receivable $15

Supplies $6

Prepaid insurance $12

Equipment $50

Less: Acc. Dep(12) $38

Land $10

Total: $105

Liabilities and Shareholders' Equity

Accounts Payable $4

Interest Payable $3

Unearned Revenue $12

Other Short- term payable $4

Long term note payable $50

Contributed CApital $20

Retained Earnings $12

Total $105

Transactions during January 2012:

1. Paid $5 for employee wages
2. Collected $10 cash from customers for work previously performed and billed
3. Purchased equipment for $5 cash
4. purchased $2 of supplies for cash
5. paid $3 to a vendor fro previously purchased on credit in DEc. 2011
6. paid the interest owed as of Dec. 31, 2011
7. Completed $18 in services for customers, receiving 50% payment in cash and billing the remainder
8. paid $15 to reduce outstanding long term note payable
9. collected $5 for the issuance of common shares

As of 1/31/12

1. Had performed 25% of the services for which it had been paid in advance
2. owes $1 for interest that will be paid next month
3. depreciated equipment in the amount of $4
4. Physical count of supplies reveals $3 on hand
5. declared and paid a cash dividend in the amount of 50% of January's net income

REQUIRED:

Question 1: Prepare a complete set of financial statements as of January 31, 2012 and prepare the statement of cash flows under the direct and indirect