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Exercise 21-27 (Algo) Statement of cash flows; direct method (LO21-3, 21-5, 21-6, 21-8] Comparative balance sheets for 2021 and 2020, a statement of income for
Exercise 21-27 (Algo) Statement of cash flows; direct method (LO21-3, 21-5, 21-6, 21-8] 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 BED, INC. Comparative Balance Sheeta December 31, 2021 and 2020 ($ in silicone) 2020 Assets Cash $ Accounts receivable Prepaid insurance Inventory Toldings and equipment Leoni Accumulated depreciation 40 200 12 300 $ 148 148 9 191 J66 (256) 5.606 $849 S103 11 $ 132 19 . 1. abilities Nounts payable Merved liabilities Notes payable Bonds payable Shareholders in Connon stock Betained earnings 189 416 60 416 39 D, INC. tatement of Inne Tor Te Ended December 31, 2021 NEVER 11,467 41 Ceas of goods sold Depreciation Operatin. not incon 91 Save & EX Additional information from the accounting records. a. During 2021. $246 million of equipment was purchased to replace $180 million of equipment (90% depreciated sold at book value. b. In order to maintain the usual policy of paying cash dividends of $66 million, it was necessary for Red to borrow $66 million from its bank Required: Prepare the statement of cash flows of Red, Inc., using the direct method to report operating activities. (Enter your answers in millions fie.. 10,000,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.) RED, INC Statement of Cash Flows For year ended December 31, 2021 (5 in millions) Cash flows from operating activities: Cash infos Cash outlows Net cash flows from operating activities Cash fows from investing activities Norcowhows from investing activities Cash flows from financing activities
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