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 Sheeta December 31, 2021 and 2020 (s in millions) 2021 2020 Assets Cash $ 34.0 $ 127.0 Accounts receivable 175.0 129.0 Prepaid insurance 24.5 7.5 Inventory 292.0 170.0 Buildings and equipment 417.0 355.0 Lost Accumulated (163.0) (249.0) depreciation 764.5 538.5 Liabilities Accounts payable 5 93.0 $ 133.0 Accrued liabilities 3.5 5.5 Notes payable 50.0 0.0 Bonds payable 210.0 Shareholders' quity CountOK 100.0 400.0 Retained earnings 105.0 20.0 0.0 PUED, C. RED, INC. Statement of Income For Year Ended December 31, 2021 ($ in millions) Revendes Sales revenue $2,300.0 Expenses Coat of goods sold $1,610.0 Depreciation expense 52.0 Operating expenses 500.0 2, 162.0 Net income $ 138.0 Additional information from the accounting records a. During 2021. $202.0 million of equipment was purchased to replace $140.0 million of equipment (95.0% depreciated) sold at book value. b. In order to maintain the usual policy of paying cash dividends of $50.0 million, it was necessary for Red to borrow $50.0 million from its bank. Required: Prepare the T-account for Red, Inc. (Enter your answers in millions rounded to 1 decimal place fi.e., 5,500,000 should be entered as 5.5)) Cash (Statement of Cash Flows) Beg Bal Operating Activities: Investing Activities: Financing Activities: End. Bal Required formation Accounts Receivable Beg Bal Prepaid Insurance Beg Bal End Bal End. Bal Inventory Beg Bal Buildings and Equipment Beg Bal End Bal End Accumulated Depreciation Beg Bali Accounts Payable Beg Bal End B End Bal Accrued Liabilities Notes Payable Beg Bal Beg Bai End Bal End. Bal Bonds Payable Sales Beg Bal Beg Bar End End Bal Cost of Goods Sold beg Ba Depreciation Expense Beg En al 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 OM End Bal 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, 2023 and 2020 (5 in millions) 2021 2020 Assets Cash $ 34.0 $ 127.0 Accounts receivable 175.0 128.0 Prepaid insurance 14.5 7.5 Inventory 292.0 170.0 Buildings and equipment 417.0 355.0 Less: Accumulated (268.0) (249.0) depreciation $764.5 $ 538.5 Liabilities Accounts payable $93.0 $ 113.0 Acorded liabilities 3.5 5.5 States payable 50.0 0.0 Bonds payable 210.9 0.9 Shareholders' quity Comon stock 400.0 400.0 Retained Songs 20.0 764.5 538.5 RED, INC. Statement of Income For Year Ended December 31, 2021 (in millions) Revendes Sales revenue $2,300.0 Expenses Coat of goods sold $1,610.0 Depreciation expense 52.0 Operating expenses 500.0 2,162.0 Net Income $ 138.0 Additional information from the accounting records a. During 2021, $2020 million of equipment was purchased to replace $140.0 million of edipment (95.0% depreciated) b. In order to maintain the usual policy of paying cash dividends of $50.0 million, it was necessary for Red to borrow $500 million from its bank Required: Prepare the statement of cash flows direct method for Red, Inc. Use the T-account method to assist in your analysis (Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions rounded to 1 decimal place fie.. 5.500.000 share be entered as 55)) Required: Prepare the statement of cash flows (direct method) for Red, Inc. Use the T-account method to assist in your analysis. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).) RED, INC Statement of Cash Flow For year ended December 31, 2021 (5 in millions Cash flows from operating activities Cash infows Cash outflows Net canh tows from operating activities Cushows from investing actes $ 00 The cash flow from insting activities 00 Cash flows from investing activities Net cash lows from investing activities Cash flows from financing activities 0.0 Net cash flows from facing activities Niat increase (decrease in cash Cash balance. January 1 Cash balance, December 31 0.0 00 S 0.0
