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 Revenues ($ in millions) 2021 2020 $ 37 $122 210 145 11 9 270 188 426 363 (132) (253) $ 822 $ 574 $ 100 $ 126 10 16 73 0 176 413 413 50 19 $ 822 $ 574 Sales revenue $2,210 Expenses Cost of goods sold $1,515 Depreciation expense 41 Operating expenses 550 2,106 Net income $ 104 Additional Information from the accounting records: a. During 2021, $243 million of equipment was purchased to replace $180 million of equipment (90% depreciated) sold at book value. b. In order to maintain the usual policy of paying cash dividends of $73 million, it was necessary for Red to borrow $73 million from its bank.