Answered step by step
Verified Expert Solution
Question
1 Approved Answer
REDINC. Comparative Balance sheets December 31, 2021 and 2020 $ in millions) 2021 2020 Assets cash $ 37 $ 122 Accounts receivable 210 145 Prepaid
REDINC. Comparative Balance sheets December 31, 2021 and 2020 $ in millions) 2021 2020 Assets cash $ 37 $ 122 Accounts receivable 210 145 Prepaid insurance 11 9 Inventory 270 188 Buildings and equipment 426 363 Less: Accumulated depreciation (132) (253) $ 822 $ 574 Liabilities Accounts payable $ 100 $ 126 Accrued liabilities 10 16 Notes payable 63 @ Bonds payable 176 @ Shareholders' Equity Common stock 413 413 Retained earnings 60 19 $ 822 $ 574 RED, INC. Statement of Income For Year Ended December 31, 2021 ($ in millions) Revenues Sales revenue $2,210 Expenses Cost of goods sold $1,515 Depreciation expense 41 Operating expenses 550 2,106 Net income $ 104 Additional information from the accounting records.. a. During 2021. $243 million of equipment was purchased to replace $180 million of equipment (90% depreciated) sold at book value. bu in order to maintain the usual policy of paying cash dividends of $63 million it was necessary for Red to borrow 563 million from its bank Required: Prepare the statement of cash flows of Red, Inc, using the direct method to report operating activities (Enter your answers in millions (1... 10,000,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started