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Comparative balance sheets for 2 0 2 4 and 2 0 2 3 , a statement of income for 2 0 2 4 , and
Comparative balance sheets for and a statement of income for and additional information from the accounting records of Red, Incorporated, are provided below: Additional information from the accounting records: a During $ million of equipment was purchased to replace $ million of equipment depreciated sold at book value. b In order to maintain the usual policy of paying cash dividends of $ million, it was necessary for Red to borrow $ million from its bank.tableRED INCORPORATEDStatement of Cash Flows,Cash flows from operating activities:,,Net income,,Adjustments for noncash effects:,,Depreciation expense,,Changes in operating assets and liabilities:,,Increase in accounts receivable,,Increase in prepaid insurance,,Increase in inventory,,Decrease in accounts payable,,Decrease in accrued liabilities,,Net cash flows from operating activities,,Cash flows from investing activities:,,Sale of equipment,,Purchase of equipment,,Net cash flows from investing activities,,Cash flows from financing activities:,,Issuance of note payable,,Issuance of bonds payable,,Payment of dividends,,Net cash flows from financing activities,,Net increase decrease in cash,,Cash balance, January Cash balance, December
Comparative balance sheets for and a statement of income for and additional information from the accounting
records of Red, Incorporated, are provided below:
Additional information from the accounting records:
a During $ million of equipment was purchased to replace $ million of equipment depreciated sold at book
value.
b In order to maintain the usual policy of paying cash dividends of $ million, it was necessary for Red to borrow $ million from
its bank.tableRED INCORPORATEDStatement of Cash Flows,Cash flows from operating activities:,,Net income,,Adjustments for noncash effects:,,Depreciation expense,,Changes in operating assets and liabilities:,,Increase in accounts receivable,,Increase in prepaid insurance,,Increase in inventory,,Decrease in accounts payable,,Decrease in accrued liabilities,,Net cash flows from operating activities,,Cash flows from investing activities:,,Sale of equipment,,Purchase of equipment,,Net cash flows from investing activities,,Cash flows from financing activities:,,Issuance of note payable,,Issuance of bonds payable,,Payment of dividends,,Net cash flows from financing activities,,Net increase decrease in cash,,Cash balance, January Cash balance, December
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