Required information Exercise 21-32 (Algo) Statement of cash flows; T-account method [LO21-8, Appendix 21B] [The following information applies to the questions displayed below.] Comparative balance sheets for 2024 and 2023, a statement of income for 2024, and additional information from the accounting records of Red, Incorporated, are provided below: Assets Cash RED, INCORPORATED Comparative Balance Sheets December 31, 2024 and 2023 ($ in millions) Accounts receivable Prepaid insurance Inventory Buildings and equipment Less: Accumulated depreciation Liabilities Accounts payable Accrued liabilities Notes payable Bonds payable Shareholders' Equity Common stock Retained earnings 2024 2023 $ 23.0 160.0 $ 156.0 116.0 10.5 286.0 358.0 (85.0) $ 752.5 $ 91.0 5.5 100.0 125.0 5.5 168.0 300.0 (210.0) $ 535.5 $ 109.0 9.5 0.0 0.0 400.0 400.0 31.0 17.0 $ 752.5 $ 535.5 Revenues RED, INCORPORATED Statement of Income For Year Ended December 31, 2024 ($ in millions) Sales revenue Expenses Cost of goods sold Depreciation expense Operating expenses Net income $ 2,100.0 $ 1,512.0 46.0 428.0 1,986.0 $ 114.0 Additional information from the accounting records: a. During 2024, $238.0 million of equipment was purchased to replace $180.0 million of equipment (95.0% depreciated) sold at book value. b. In order to maintain the usual policy of paying cash dividends of $100.0 million, it was necessary for Red to borrow $100.0 million from its bank. Exercise 21-32 (Algo) Part 1 Required: Prepare the T-account for Red, Incorporated. Note: 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) Beginning Balance Operating Activities: Investing Activities: Financing Activities: