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) 2021 2020 Assets Cash $ 28 $ 114 Accounts receivable 184 136 Prepaid insurance 13 8 Inventory 250 179 Buildings and equipment 451 354 Less: Accumulated depreciation (123) (244) $ 803 $ 547 Liabilities Accounts payable $ 93 $ 108 Accrued liabilities 12 18 Notes payable 54 0 Bonds payable 172 Shareholders' Equity Common stock 404 404 Retained earnings 68 17 $ 803 $ 547 RED, INC. Statement of Income For Year Ended December 31, 2021 ($ in millions) Revenues Sales revenue $2, 020 Expenses Cost of goods sold $1, 414 Depreciation expense 41 Operating expenses 460 1, 915 Net income $ 105