Exercise 21-32 (Algo) Statement of cash flows; T-account method [LO21-8, Appendix 21B] [The following information applies to the questions displayed below.] 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: Assets Cash RED, INCORPORATED Comparative Balance Sheets December 31, 2024 and 2023 ($ in millions) Accounts receivable Prepaid insurance Inventory Buildings and equipment 20241 2023 $ 34.0 175.0 $ 127.0 128.0 14.5 292.0 417.0 (168.0) 7.5 170.0 355.0 (249.0) Less: Accumulated depreciation Liabilities Accounts payable Accrued liabilities Notes payable Bonds payable Shareholders' Equity Common stock Retained earnings $ 764.5 $ 538.5 $ 93.0 3.5 $ 113.0 5.5. 50.0 0.0 110.0 0.0 400.0 400.0 108.0 20.0 $ 764.5 $ 538.5 RED, INCORPORATED Statement of Income For Year Ended December 31, 2024 ($ in millions) Revenues Sales revenue $ 2,300.0 Expenses Cost of goods sold $ 1,610.0 < Prev 6 S 7 Next > Required information. Cost of goods sold $ 1,610.0 Depreciation expense 52.0 Operating expenses 500.0 Net income 2,162.0 $ 138.0 Additional information from the accounting records: a. During 2024, $202.0 million of equipment was purchased to replace $140.0 million of equipment (95.0% depreciated) sold at book value.. b. In order to maintain the usual policy of paying cash dividends of $50.0 million, it was necessary for Red to borrow $50.0 million from its bank. Exercise 21-32 (Algo) Part 2 Required: Prepare the statement of cash flows (direct method) for Red, Incorporated. Use the T-account method to assist in your analysis. Note: Cash outflows should be indicated with a minus sign. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). RED, INCORPORATED Statement of Cash Flows For year ended December 31, 2024 (5 in millions) Cash flows from operating activities: Cash inflows: From customers 9 < Prev 6 7 of 7 Next > 6 art 1 of 2 nts eBook Hint Print Required information Casin lows from operaung activites Cash inflows: From customers: Cash outflows: To suppliers of goods For operating expenses Net cash flows from operating activities Cash flows from investing activities: Sale of equipment Purchase of equipment Net cash flows from investing activities Cash flows from financing activities: Issuance of note payable Issuance of bonds payable Payment of dividends Net cash flows from financing activities Net increase (decrease) in cash Cash balance, January 1 Cash balance, December 31 $ 0.0 0.0 0.0 0.0 $ 0.0