Exercise $21-32($Algo$)$ Statement of cash flows; T$-$account method $[$LO$21-8,$ Appendix $21$B$]$

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Comparative balance sheets for $2024$ and $2023,$ a statement of income for $2024,$ and additional information from the accounting records of Red, Incorporated, are provided below:

RED, INCORPORATED

Comparative Balance Sheets

December $31,2024$ and $2023($$ in millions$)$

$20242023$

Assets

Cash $ $34\mathrm{.}0$ $ $127\mathrm{.}0$

Accounts receivable $175\mathrm{.}0128\mathrm{.}0$

Prepaid insurance $14\mathrm{.}57\mathrm{.}5$

Inventory $292\mathrm{.}0170\mathrm{.}0$

Buildings and equipment $417\mathrm{.}0355\mathrm{.}0$

Less: Accumulated depreciation $(168\mathrm{.}0)(249\mathrm{.}0)$

$ $764\mathrm{.}5$ $ $538\mathrm{.}5$

Liabilities

Accounts payable $ $93\mathrm{.}0$ $ $113\mathrm{.}0$

Accrued liabilities $3\mathrm{.}55\mathrm{.}5$

Notes payable $50\mathrm{.}00\mathrm{.}0$

Bonds payable $110\mathrm{.}00\mathrm{.}0$

Shareholders$$ Equity

Common stock $400\mathrm{.}0400\mathrm{.}0$

Retained earnings $108\mathrm{.}020\mathrm{.}0$

$ $764\mathrm{.}5$ $ $538\mathrm{.}5$

RED, INCORPORATED

Statement of Income

For Year Ended December $31,2024$

$($$ in millions$)$

Revenues

Sales revenue $ $2,300\mathrm{.}0$

Expenses

Cost of goods sold $ $1,610\mathrm{.}0$

Depreciation expense $52\mathrm{.}0$

Operating expenses $500\mathrm{.}02,162\mathrm{.}0$

Net income $ $138\mathrm{.}0$

Additional information from the accounting records:

During $2024,$ $$202\mathrm{.}0$ million of equipment was purchased to replace $$140\mathrm{.}0$ million of equipment $(95\mathrm{.}0\%$ depreciated$)$ sold at book value.

In order to maintain the usual policy of paying cash dividends of $$50\mathrm{.}0$ million, it was necessary for Red to borrow $$50\mathrm{.}0$ million from its bank.

Exercise $21-32($Algo$)$ Part $1$

Required:

Prepare the T$-$account for Red, Incorporated.

Note: Enter your answers in millions rounded to $1$ decimal place $($i$.$e$.,5,500,000$ should be entered as $5\mathrm{.}5).$