Assets RED, INCORPORATED Comparative Balance Sheets December 31, 2024 and 2023 ($ in millions) 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 2023 2024 $ 36.0 162.0 $ 135.0 122.0 14.0 272.0 368.0 (72.0) 7.0 164.0 320.0 (224.0) $ 524.0 $ 780.0 $ 82.0 8.0 50.0 175.0 400.0 $ 96.0 15.0 0.0 0.0 65.0 400.0 13.0 $ 780.0 $ 524.0 RED, INCORPORATED Statement of Income For Year Ended December 31, 2024 ($ in millions) Revenues Sales revenue $ 1,880.0 Expenses Cost of goods sold $ 1,316.0 Depreciation expense Operating expenses 38.0 424.0 1,778.0 $ 102.0 Net income Additional information from the accounting records: a. During 2024, $248.0 million of equipment was purchased to replace $200.0 million of equipment (95.0% depreciated) sold at book value. b. In order to maintain the usual policy of paying cash dividends of $50.0 million, it was necessary for Red to borrow $50.0 million from its bank.