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 $ 44.1 $ 164.6 Accounts receivable 143.0 94.0 Prepaid insurance 5.4 2.4 Inventory 298.0 172.0 Buildings and equipment 436.0 370.0 Less: Accumulated depreciation (144.0) (259.0) $ 782.5 $ 544.0 Liabilities Accounts payable $ 95.0 $ 106.5 Accrued liabilities 8.5 15.5 Notes payable 100.0 0.0 Bonds payable 130.0 0.0 Shareholders' Equity Common stock 400.0 400.0 Retained earnings 49.0 22.0 $ 782.5 544.0 RED, INC. Statement of Income For Year Ended December 31, 2021 ($ in millions) Revenues Sales revenue $2,500.0 Expenses Cost of goods sold $1,825.0 Depreciation expense 56.0 Operating expenses 492.0 2,373.0 Net income $ 127.0 Additional information from the accounting records: a. During 2021, $246.0 million of equipment was purchased to replace $180.0 million of equipment (95.0% depreciated) sold at book value. b. In order to maintain the usual policy of paying cash dividends of $100.0 million, it was necessary for Red to borrow $100.0 million from its bank. X Answer is not complete. Accounts Receivable Prepaid Insurance Beg. Bal 94.0 Beg. Bal From customers Issuance of notes End. Bal 94.0 End. Bal Inventory Buildings and Equipment Beg. Bal Beg. Bal Purchase of equipment End. Bal End. Bal Accumulated Depreciation Accounts Payable Beg. Bal Beg. Bal Sale of equipment End. Bal End. Bal Accrued Liabilities Notes Payable Beg. Bal Beg. Bal End. Bal End. Bal Bonds Payable Sales Beg. Bal Beg. Bal End. Bal End. Bal Cost of Goods Sold Depreciation Expense Beg. Bal Beg. Bal End. Bal End. Bal Operating Expenses Net Income (Income Summary) Beg. Bal Beg. Bal Net Income End. Bal End. Bal Retained Earnings Common Stock Beg. Bal Beg. Bal End. Bal End. Bal