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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 $ 23.0 $ 156.0
Accounts receivable 160.0 116.0
Prepaid insurance 10.5 5.5
Inventory 286.0 168.0
Buildings and equipment 358.0 300.0
Less: Accumulated depreciation (85.0 ) (210.0 )
$ 752.5 $ 535.5
Liabilities
Accounts payable $ 91.0 $ 109.0
Accrued liabilities 5.5 9.5
Notes payable 100.0 0.0
Bonds payable 125.0 0.0
Shareholders Equity
Common stock 400.0 400.0
Retained earnings 31.0 17.0
$ 752.5 $ 535.5

RED, INC. Statement of Income For Year Ended December 31, 2021
($ in millions)
Revenues
Sales revenue $ 2,100.0
Expenses
Cost of goods sold $ 1,512.0
Depreciation expense 46.0
Operating expenses 428.0 1,986.0
Net income $ 114.0

Additional information from the accounting records:

During 2021, $238.0 million of equipment was purchased to replace $180.0 million of equipment (95.0% depreciated) sold at book value.

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.

Required: Prepare the T-account for Red, Inc. (Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).)

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