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 $ 37 $ 122 Accounts receivable 210 145 Prepaid insurance 11 9 Inventory 270 188 Buildings and equipment 426 363 Less: Accumulated depreciation (132) (253) $ 822 $ 574 Liabilities Accounts payable $ 100 $ 126 Accrued liabilities 10 16 Notes payable 73 0 Bonds payable 176 0 Shareholders' Equity Common stock 413 413 Retained earnings 50 19 $ 822 $ 574 RED, INC. Statement of Income For Year Ended December 31, 2021 ($ in millions) Revenues Sales revenue $2,210 Expenses Cost of goods sold $1,515 Depreciation expense 41 Operating expenses 550 2,106 Net income $ 104 RED, INC. Statement of Cash Flows For year ended December 31, 2021 ($ in millions) Cash flows from operating activities: Adjustments for noncash effects: Changes in operating assets and liabilities: Net cash flows from operating activities Cash flows from investing activities: Net cash flows from investing activities Cash flows from financing activities: Net cash flows from financing activities Net increase (decrease) in cash Cash balance, January 1 Cash balance, December 31 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 $ 37 $ 122 Accounts receivable 210 145 Prepaid insurance 11 9 Inventory 270 188 Buildings and equipment 426 363 Less: Accumulated depreciation (132) (253) $ 822 $ 574 Liabilities Accounts payable $ 100 $ 126 Accrued liabilities 10 16 Notes payable 73 0 Bonds payable 176 0 Shareholders' Equity Common stock 413 413 Retained earnings 50 19 $ 822 $ 574 RED, INC. Statement of Income For Year Ended December 31, 2021 ($ in millions) Revenues Sales revenue $2,210 Expenses Cost of goods sold $1,515 Depreciation expense 41 Operating expenses 550 2,106 Net income $ 104 RED, INC. Statement of Cash Flows For year ended December 31, 2021 ($ in millions) Cash flows from operating activities: Adjustments for noncash effects: Changes in operating assets and liabilities: Net cash flows from operating activities Cash flows from investing activities: Net cash flows from investing activities Cash flows from financing activities: Net cash flows from financing activities Net increase (decrease) in cash Cash balance, January 1 Cash balance, December 31