Refer to the data provided in E 21-27 for Red, Inc.

E21-27

Required:
Prepare the statement of cash flows (direct method) for Red, Inc. Use the T-account method to assist in your analysis.

Transcribed Image Text:

RED, INC. Comparative Balance Sheets December 31, 2018 and 2017 ($ in millions) 2 Accounts receivable Buildings and equipment Less: Accumulated depreciation Accounts payable Accrued expenses payable Notes payable 0 Shareholders' Equlty 2 RED, INC. Statement of Income For Year Ended December 31, 2018 (S in millions) Sales revenue $2,000 Cost of goods sold Depreciation expense Operating expenses 1,897 $ 103