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RED INC Comparative balance sheets for 2021 and 2020, a statement of Income for 2021, and additional information from the accounting records of Red, Inc.
RED INC 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. RED, INC Comparative Balance Sheets December 31, 2021 and 2020 (5 in millions) 2021 2020 Assets Cash 538 $ 11e Accounts receivable 215 146 Prepaid Insurance 13 2 Inventory 280 200 Buildings and equipment 429 364 less Accumulated depreciation (133 (254) 5 841 5.573 Liabilities Accounts payable 5 101 5 520 Accrued abilities 17 Notes payable Bonds payable Shareholders' Equity Common stock 414 10 Betained earnings $ 100 14 D. THO Statement of Income For Your Endod December 31, 2021 inions Cost to Duration $1.17 1 20 Additional information from the accounting records: a. During 2021. $244 million of equipment was purchased to replace $180 milion of equipment (80% depreciated) sold at book value. b. In order to maintain the usual policy of paying cash didends of $64 million. It was necessary for Red to borrow $64 million from its bank Required: Prepare the statement of cash flows for Red, Inc., using the Indirect method to report operating activities. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions (le, 10,000,000 should be entered as 10).) RED, INC Statement of Cash Flows For year ended December 31.071 is in ons Cash flows from operating activities Adjustments for noncash effects Changes in operating assets and abilities Net cash flows from operating sites Cash flows from investing actives Cash flows from operating activities: Adjustments for noncash effects Changes in operabing assets and liabilities $ 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 S
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