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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
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. RED, INC. Comparative Balance Sheets December 31, 2021 and 2020 ($ in millions) Assets Cash Accounts receivable Prepaid insurance Inventory Buildings and equipment Less: Accumulated depreciation 2021 2020 $ 30 $122 190 138 13 9 2541 455 (125) I 181 356 (246) $ 817 $ 560 Liabilities Accounts payable $ 97 $ 112 Accrued liabilities 12 21 Notes payable 56 0 Bonds payable 162 0 Shareholders' Equity Common stock 406 406 Retained earnings 84 21 $817 $ 560 RED, INC. Statement of Income For Year Ended December 31, 2021 Revenues (5 in millions). Sales revenue Expenses Cost of goods sold Depreciation expense Operating expenses Net income $2,080 $1,444 31 486 1,961 $ 119 Additional information from the accounting records: Required: Prepare the statement of cash flows of Red, Inc., using the direct method to report operating activities. (Enter your answers in million (i.e., 10,000,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.) RED, INC. Statement of Cash Flows For year ended December 31, 2021 ($ In millions) Cash flows from operating activities: Cash inflows: Cash outflows: Net cash flows from operating activities Cash flows from investing activities: $ 0 Net cash flows from investing activities Cash flows from financing activities: Net cash flows from financing activities Net increase (decrease) in cash Cash balance, January 1 Cash balance, December 31, $ 0 0
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