Comparative balance sheets for 2 0 2 4 and 2 0 2 3 , a statement of
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Question:
Comparative balance sheets for and a statement of income for and additional information from the accounting records of Red, Incorporated, are provided below:
RED, INCORPORATED
Comparative Balance Sheets
December and $ in millions
Assets
Cash $ $
Accounts receivable
Prepaid insurance
Inventory
Buildings and equipment
Less: Accumulated depreciation
$ $
Liabilities
Accounts payable $ $
Accrued liabilities
Notes payable
Bonds payable
Shareholders Equity
Common stock
Retained earnings
$ $
RED, INCORPORATED
Statement of Income
For Year Ended December
$ in millions
Revenues
Sales revenue $
Expenses
Cost of goods sold $
Depreciation expense
Operating expenses
Net income $
Additional information from the accounting records:
During $ million of equipment was purchased to replace $ million of equipment depreciated sold at book value.
In order to maintain the usual policy of paying cash dividends of $ million, it was necessary for Red to borrow $ million from its bank.
Required:
Prepare the statement of cash flows of Red, Incorporated, for the year ended December using the direct method to report operating activities.
Note: Enter your answers in millions ie should be entered as Cash outflows should be indicated with a minus sign.
Related Book For
Intermediate accounting
ISBN: 978-0077647094
7th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
Posted Date: