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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
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 $34.0 $ 127.0 Nccounts receivable 175.0 128.0 Prepaid insurance 14.5 7.5 Inventory 292.0 170.0 Buildings and equipment 417.0 355.0 Lesa: Rocumulated (260.00 depreciation (249.0) $764.5 5538.5 Liabilities Accounts payable $93.0 S 123.0 Accrued liabilities 3.5 5.5 Motes payable 50.0 0.0 Bonds payable 110.0 0.0 Shareholders' waity Comon stock 400.0 400.0 Retained earnings 100.0 20.0 764.5 $538.5 ID, TEC. Statement of Income TOE ET Ended December 31, 2021 SCF0 Saved Help Sa 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 Flows For year ended December 31, 2021 (5 in millions) Cash fons from operating activities Cashindows Cash outflows Tiet cash flows from operating activities Cashows from investing activities $ 0.0 nal Required information Cash flows from investing activities Net cash flows from investing activities Cash flows from financing activities 0.0 The cash flows from financing activities Not increase (decrease in cash Cash balance, January Cash balance December 31 0.0 00 5 0.0
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