The December 31, 2014, balance sheet of Tybee Corporation is provided below (in millions).

Transactions during January 2015:

• Paid $5 for employee wages.

• Collected $10 cash from customers for work previously performed and billed.

• Purchased equipment for $5 cash.

• Purchased $2 of supplies for cash.

• Paid $3 to a vendor for supplies previously purchased on credit in December 2014.

• Paid the interest owed as of December 31, 2014.

• Completed $18 in services for customers, receiving 50 percent payment in cash and billing the remainder.

• Paid $15 to reduce outstanding long-term note payable.

• Collected $5 for the issuance of common shares.

As of 1/31/15:

• Had performed 25 percent of the services for which it had been paid in advance.

• Owes $1 for interest that will be paid next month.

• Depreciated equipment in the amount of $4.

• Physical count of supplies reveals $3 on hand.

• Declared and paid a cash dividend in the amount of 50 percent of January’s net income.

REQUIRED:

Prepare a complete set of financial statements as of January 31, 2015, and prepare the statement of cash flows under the direct and the indirect (Appendix 4A) method.

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Llabilities and Shareholders' Equlty Assets $ 24 $ 4 Accounts payable Cash Interest payable Accounts receivable 15 3 Unearned revenue Supplies 12 Other short-term payables Prepaid insurance 12 Equipment 50 Long-term note payable 50 Less: Acc. dep. (12) Contributed capital 38 20 Retained earnings Land 10 12 $105 $105 Total Total