The following are the summary account balances from a recent statement of financial position of Modern Sportswear Inc. at December 31, 2020. The accounts are followed by a list of transactions for the month of January 2021 All amounts are shown in millions of t dollars Cash Long-term borrowings Accounts receivable Inventories Other non-current liabilities Property and equipment, net The accounts have normal debit or credit balances. F The following additional information is also available. 720 Accounts payable 2,654 Income tax payable 1,750 Prepaid expenses 721 Retained earnings 2,943 Other non-current assets 12,054 Contributed capital a Purchased new equipment costing $320 by issuing long-term debt. b. Received $1,070 on Accounts receivable. c Received and paid the telephone bills for $4 d. Earned $755 in sales to customers on account; the cost of sales was $385. e Paid employees $185 for wages earned in January Paid half of the income taxes payable g. Purchased inventory for $478 on account h. Prepaid rent for February for a warehouse for $29. Paid $16 of long-term borrowings and $1 in interest on the debt Purchased a patent (an intangible asset) for $25 cash Required: 182 Post the above transactions in to the appropriate T-accounts $ 2,077 470 33 5,475 1,381 3,850 Type here to search 3. Show the effects of each transaction on net earnings and cash. (Enter any decreases to account balances with a minus sign.) Transaction a b. C d e t g h 1. Effect on Net Earnings Effect o Carli 4-a Prepare a statement of earnings for the month of January 2021. 4-a. Prepare a statement of earnings for the month of January 2021, MODERN SPORTSWEAR INC Statement of Earnings For the Month Ended January 31, 2021 Revenues: (in millions of dollars). Operating expenses Total operating expenses Other income and expenses Total expenses 0 4-b. Prepare a classified statement of financial position as at January 31, 2021. MODERN SPORTSWEARING Statement of Financial Position As at January 31,2021 Current assets: Cash (in millions of dollars) Assets Accounts receivable Inventories Prepaid expenses Total current assets Property and equipment, net Other non-current assets Liabilities and Shareholders' Equity Total assets Current liabilities: Accounts payable Income tax payable Total current liabilities Long-term borrowings Other non-current liabilities $ 0 Total liabilities 0 Shareholders' Equity Contributed capital Retained earnings Total shareholders' equity 0 Total liabilities and shareholders' equity $ 0 0 5. Compute the company's total asset turnover ratio. (Enter your answer in numbers and not in percentages. Round the final answer to 3 decimal places. Do not round intermediate calculations.) Total asset turnover ratio