RED, INC. Comparative Balance Sheets December 31, 2021 and 2020 ($ in millions) 2021 2020 Assets Cash $ 30 $ 122 Accounts receivable 190 138 Prepaid insurance 13 9 Inventory 254 181 Buildings and equipment 455 356 Less: Accumulated depreciation (125) (246) $ 817 $ 560 Liabilities Accounts payable $ 97 $ 112 Accrued liabilities 12 21 Notes payable 36 Bonds payable 162 0 Shareholders' Equity Common stock 406 406 Retained earnings 104 21 $ 817 $ 560 0 RED, INC. Statement of Income For Year Ended December 31, 2021 ($ in millions) Revenues Sales revenue $2,080 Expenses Cost of goods sold $1,444 Depreciation expense 31 Operating expenses 486 1,961 Net income $ 119 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 cash flows from financing activities Net increase (decrease) in cash Cash balance, January 1 Cash balance, December 31