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Please Read Carefully. The Required is to Prepare T-accounts and Statement of cashflows 5 Comparative balance sheets for 2021 and 2020, a statement of income
Please Read Carefully. The Required is to Prepare T-accounts and Statement of cashflows
5 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. art 1 of 2 nts 5.5 2.5 166.0 Skipped RED, INC. Comparative Balance Sheets December 31, 2021 and 2020 ($ in millions) 2021 2020 Assets Cash $ 51.5 $ 143.5 Accounts receivable 166.0 124.0 Prepaid insurance Inventory 280.0 Buildings and equipment 369.0 315.0 Less: Accumulated depreciation (130.0) (221.0) $ 742.0 $ 530.0 Liabilities Accounts payable $ 80.0 $ 96.0 Accrued liabilities 10.0 19.0 Notes payable 50.0 0.0 Bonds payable 165.0 0.0 Shareholders' Equity Common stock 400.0 400.0 Retained earnings 37.0 15.0 $ 742.0 $ 530.0 eBook Print eferences RED, INC. Statement of Income For Year Ended December 31, 2021 ($ in millions) Revenues Sales revenue $1,800.0 Expenses Cost of goods sold $1,260.0 Depreciation expense 42.0 Operating expenses 426.0 1,728.0 Net income 72.0 Additional information from the accounting records: a. During 2021, $194.0 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 $50.0 million from its bank. Required: Prepare the T-account for Red, Inc. (Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).) Cash (Statement of Cash Flows) Beg. Bal. Operating Activities: Investing Activities: Financing Activities: End. Bal. Accounts Receivable Prepaid Insurance Beg. Bal Beg. Bal End. Bal End. Bal Inventory Buildings and Equipment Beg. Bal Beg. Bal End. Bal End. Bal Accumulated Depreciation Accounts Payable Beg. Bal Beg. Bal End. Bal End. Bal Accrued Liabilities Notes Payable Beg. Bal Beg. Bal End. Bal End. Bal Bonds Payable Sales Beg. Bal Beg. Bal End. Bal End. Bal Cost of Goods Sold Depreciation Expense Beg. Bal Beg. Bal End. Bal End. Bal Operating Expenses Net Income (Income Summary) Beg. Bal Beg. Bal Net Income End. Bal End. Bal Retained Earnings Common Stock Beg. Bal Beg. Bal End. Bal End. Bal Statement of Cash Flows For year ended December 31, 2021 ($ in millions) Cash flows from operating activities: Cash inflows: Cash outflows: $ 0.0 Net cash flows from operating activities Cash flows from investing activities: Net cash flows from investing activities 0.0 Cash flows from financing activities: 0.0 0.0 Net cash flows from financing activities Net increase (decrease) in cash Cash balance, January 1 Cash balance, December 31 $ 0.0Step by Step Solution
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