The following are several December 31, 2012, account balances (in millions of dollars) from the 2012 annual report of Canada Post Corporation, followed by several typical transactions:

These accounts have normal debit or credit balances, but are not necessarily in good order. The following hypothetical transactions (in millions of dollars) occurred in January 2013:
a. Provided delivery service to customers, receiving $ 720 in trade receivables and $ 60 in cash.
b. Purchased new equipment costing $ 816; paid $ 116 and signed a long- term note for the remainder.
c. Paid $ 74 cash to rent equipment, with $ 64 for rental this month and the rest for rent for the first few days in February.
d. Spent $ 126 cash to maintain and repair facilities and equipment during the month.
e. Collected $ 652 from customers on account.
f. Borrowed $ 90 by signing a long- term note.
g. Paid employees $ 180 for work during the month.
h. Purchased $ 9 of supplies on account.
i. Paid $ 184 on trade payables.
j. Ordered $ 72 in spare parts and supplies. k. Received a bill for $ 6 for utilities services, payable in February. l. Used supplies during the month totalling $ 65.
Required:
1. Prepare a spreadsheet similar to Exhibit 5.4 . Show the effects of the January transactions on the appropriate accounts, and on the three cash flow categories.
2. Prepare a table similar to Exhibit 5.5 showing both the cash and non- cash components of revenues and expenses for January 2013.
3. Prepare the operating activities section of the statement of cash flows for Canada Post Corporation for January 2013 using the indirect method.
4. Compute the quality of earnings ratio for January 2013, and explain why it is different from 1.0.

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Account Non-curtent assets Trade payables Short-tem investments Accrued liabilitiee Long-tem borrowings Deferred revenue Balance $4,798 Account Equity of Canada Trade receivables Balance $1,533 662 492 842 Supplies inventory 732 Cash 271 75 2,666 1127 Provisions 129 Other non-current liabilities