RED, INC. Comparative Balance Sheets December 31, 2021 and 2020 ($ in millions) 2021 2020 Assets Cash $ 29 $ 114 Accounts receivable 188 137 Prepaid insurance 14 6 Inventory 252 180 Buildings and equipment 453 355 Less: Accumulated depreciation (124) (245) $ 812 $ 547 $ Liabilities Accounts payable Accrued liabilities Notes payable Bonds payable Shareholders' Equity Common stock Retained earnings 95 13 55 162 $ 110 20 0 0 405 82 405 12 $ 812 $ 547 RED, INC. Statement of Income For Year Ended December 31, 2021 ($ in millions) Revenues Sales revenue $2,030 Expenses Cost of goods sold $1,430 Depreciation expense 41 Operating expenses 434 1,905 Net income $ 125 RED, INC. Statement of Cash Flows For year ended December 31, 2021 ($ in millions) Cash flows from operating activities: Cash inflows: Cash outflows: $ 0 Net cash flows from operating activities Cash flows from investing activities: 0 Net cash flows from investing activities Cash flows from financing activities: 0 0 Net cash flows from financing activities Net increase (decrease) in cash Cash balance, January 1 Cash balance, December 31 $ 0 RED, INC. Comparative Balance Sheets December 31, 2021 and 2020 ($ in millions) 2021 2020 Assets Cash $ 29 $ 114 Accounts receivable 188 137 Prepaid insurance 14 6 Inventory 252 180 Buildings and equipment 453 355 Less: Accumulated depreciation (124) (245) $ 812 $ 547 $ Liabilities Accounts payable Accrued liabilities Notes payable Bonds payable Shareholders' Equity Common stock Retained earnings 95 13 55 162 $ 110 20 0 0 405 82 405 12 $ 812 $ 547 RED, INC. Statement of Income For Year Ended December 31, 2021 ($ in millions) Revenues Sales revenue $2,030 Expenses Cost of goods sold $1,430 Depreciation expense 41 Operating expenses 434 1,905 Net income $ 125 RED, INC. Statement of Cash Flows For year ended December 31, 2021 ($ in millions) Cash flows from operating activities: Cash inflows: Cash outflows: $ 0 Net cash flows from operating activities Cash flows from investing activities: 0 Net cash flows from investing activities Cash flows from financing activities: 0 0 Net cash flows from financing activities Net increase (decrease) in cash Cash balance, January 1 Cash balance, December 31 $ 0