Aa 6 The following are several account balances (in millions of dollars) from the 2017 annual report of Canada Post Corporation, followed by several typical ansactions. The corporation's vision is described in the annual report as follows: Canada Post will be a world leader in providing innovative physical and electronic delivery solutions, creating value for our customers, employees, and all Canadians. Account Balance Account Balance Property, plant, and equipment, net $2,627 Equity (debit) $ 354 Accounts payable 583 Receivables 944 Short-term investments 821 Other non-current assets 2,060 Accrued liabilities 600 Cash 1,503 Long-term borrowings 1.025 Investments (long-term) 526 Deferred revenues 305 Other non-current liabilities 6.322 CP se accounts have normal debit or credit balances, except for equity, which has a debit balance. The following hypothetical transactions (in millions of ars) occurred the next month (from January 1, 2018 to January 31, 2018): rovided delivery service to customers, receiving $564 in accounts receivable and $60 in cash. urchased new equipment costing $540; signed a long-term note. aid $74 in cash to rent equipment, with $64 for rental this month and the rest for rent for the first few days in February. ment $396 in cash to maintain and repair facilities and equipment during the month. 11:29 pm Accrued liabilities 600 Cash 1,503 Long-term borrowings 1,025 Investments (long-term) 526 Deferred revenues 305 Other non-current liabilities 6,322 Aa F 42 These accounts have normal debit or credit balances, except for equity, which has a debit balance. The following hypothetical transactions (in millions of dollars) occurred the next month (from January 1, 2018 to January 31, 2018): a. Provided delivery service to customers, receiving $564 in accounts receivable and $60 in cash. b. Purchased new equipment costing $540; signed a long-term note. c. Paid $74 in cash to rent equipment, with $64 for rental this month and the rest for rent for the first few days in February. d. Spent $396 in cash to maintain and repair facilities and equipment during the month. e. Collected $675 from customers on account. f Borrowed $90 by signing a long-term note (ignore interest). g. Paid employees $279 earned during the month. h. Purchased for cash and used $49n supplies. 7. Paid $184 on accounts payable. Ordered $72 in spare parts and supplies. Required: Page 170 1. Prepare T-accounts for the preceding list and enter the respective balances. (You will need additional T-accounts for statement of earnings accounts.) 2. For each transaction, record the effects in the T-accounts. Label each by using the letter of the transaction. Compute ending balances. 3. Show the effects (direction and amount) of each transaction on net earnings and cash. 4. Prepare in good form a multiple-step statement of earnings for January 2018. 5. Prepare in good form a classified statement of financial position as at January 31, 2018. re to search OP 4C (8) 4) ENG 11:29 pm 01/02/2023 Aa 6 ccounts payable. ered $72 in spare parts and supplies. d: are T-accounts for the preceding list and enter the respective balances. (You will need additional T-accounts for statement of earnings accounts.) ach transaction, record the effects in the T-accounts. Label each by using the letter of the transaction. Compute ending balances. -the effects (direction and amount) of each transaction on net earnings and cash. re in good form a multiple-step statement of earnings for January 2018. re in good form a classified statement of financial position as at January 31, 2018. ute the company's total asset turnover ratio and its return on assets. What do these ratios suggest to you about Canada Post? Assume that the erm note of $90 was signed on January 31, and that interest has not accrued yet. etermining and Interpreting the Effects of Transactions on Statement of Earnings Categories and Return on Assets (P3-6) LO3-4, 3-6 Noble, Inc. CE Hoble, Inc. revolutionized bookselling by making its stores public spaces and community institutions where customers may browse, find a book, cup of coffee, talk with authors, and join discussion groups. Today it is fighting increasing competition not only from traditional sources but line booksellers. Presented here is a recent statement of earnings (in millions of dollars): Net sales Cost of sales $3,662 2,551