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Comparative balance sheets for 2018 and 2017, a statement of income for 2018, and additional information from the accounting records of Red, Inc., are provided

Comparative balance sheets for 2018 and 2017, a statement of income for 2018, and additional information from the accounting records of Red, Inc., are provided below.

RED, INC. Comparative Balance Sheets December 31, 2018 and 2017 ($ in millions)
2018 2017
Assets
Cash $ 28.0 $ 124.0
Accounts receivable 158.0 120.0
Prepaid insurance 10.0 5.0
Inventory 266.0 162.0
Buildings and equipment 379.0 335.0
Less: Accumulated depreciation (98.0 ) (235.0 )
$ 743.0 $ 511.0
Liabilities
Accounts payable $ 84.0 $ 95.0
Accrued expenses payable 3.0 5.0
Notes payable 50.0 0.0
Bonds payable 155.0 0.0
Shareholders Equity
Common stock 400.0 400.0
Retained earnings 51.0 11.0
$ 743.0 $ 511.0

RED, INC. Statement of Income For Year Ended December 31, 2018
($ in millions)
Revenues
Sales revenue $ 1,820.0
Expenses
Cost of goods sold $ 1,274.0
Depreciation expense 34.0
Operating expenses 422.0 1,730.0
Net income $ 90.0

  1. During 2018, $224.0 million of equipment was purchased to replace $180.0 million of equipment (95.0% depreciated) sold at book value.
  2. 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.

Required: Prepare the T-account for Red, Inc. (Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).)

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