Comparative balance sheets for 2021 and 2020, a statement of income for 2021, and additional information from the accounting records of Red, Inc., are provided below. 2021 RED, INC. Comparative Balance Sheets December 31, 2021 and 2020 (s in millions) 2020 Assets Cash $ 24 Accounts receivable $ 110 178 132 Prepaid insurance 7 3 Inventory 285 Buildings and equipment 175 400 350 Less: Accumulated depreciation (119) (240) $ 775 $ 530 Liabilities Accounts payable $ 87 Accrued liabilities $ 100 6 11 Notes payable 50 Bonds payable 160 Shareholders' Equity Common stock 400 400 Retained earnings 72 19 $ 775 $ 530 RED, INC Statement of Income For Year Ended December 31, 2021 (s in millions) Revenues Sales revenue $2,000 Expenses Cost of goods sold $1,400 Depreciation expense 50 Operating expenses 447 1,897 Net income $ 103 Additional information from the accounting records