Comparative balance sheets for 2016 and 2015, a statement of income for 2016, and additional information from the accounting records of Red, Inc., are provided below. RED, INC Comparative Balance Sheets December 31, 2016 and 2015 in millions) 2016 2015 Assets 36 1422 Cash Accounts receivable 209 144 Prepaid insurance 12 Inventory 260 187 Buildings and equipment 424 362 Less: Accumulated depreciation (131) (252) 810 591 Liabilities 99 124 Accounts payable Accrued expenses payable 14 Notes payable 62 Bonds payable 147 Shareholders' Equity Common stock 412 412 Retained earnings 79 41 810 591 RED, INC Statement of Income For Year Ended December 31, 2016 in millions) Revenues $2,200 Sales revenue Expenses $1,528 Cost of goods sold Depreciation expense 47 Operating expenses 525 2,100 100 Net income