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 million) 2021 2020 Asseto Cash $ 24 $ 110 Accounts receivable 178 132 Prepaid insurance 7 3 Inventory 285 195 Buildings and equipment 400 350 Laser herumalated depreciation (119) (240) 775 530 Liabilities Necounts payable $ 87 $ 100 Recrued liabilities 11 Notes payable 50 Bonds payable 160 0 shareholders' Equity Common stoer 400 400 Retained earnings 22 19 775 $530 es RED, INC. Statement of Income Yor Year Ended December 31, 2021 in million) Revenues Sales revenue $2,000 Expenses Cost of goods sold $1,400 Depreciation expense 50 Operating expenses 467 Not income $ 103 Additional information from the accounting records RED, INC. Statement of Cash Flows For year ended December 31, 2021 ($ in millions) Cash flows from operating activities: Net income $ 103 Adjustments for noncash effects: Depreciation expense Changes in operating assets and liabilities: Decrease in accounts payable $ fos Net cash flows from operating activities Cash flows from investing activities: 0 Net cash flows from investing activities Cash flows from financing activities: 0 103 Net cash flows from financing activities Net increase (decrease) in cash Cash balance, January 1 Cash balance, December 31 $ 103 Next