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 Liabilities Accounts payable Accrued liabilities Notes payable Bonds payable Shareholders' Equity Common stock Retained earnings RED, INC. Statement of Income For Year Ended December 31, 2021 ($ in millions) 2021 2020 $ 110 132 (119) 8 3 175 350 (240) $ 530 $ 100 11 0 400 19 $775 $ 530 Revenues Sales revenue $2,000 Expenses Cost of goods sold $1,400 Depreciation expense Operating expenses 50 447 1,897 Net income $ 103 Additional information from the accounting records: a. During 2021, $230 million of equipment was purchased to replace $180 million of equipment (95% depreciated) sold at book value. ($50 million from its bank