Required information

[The following information applies to the questions displayed below.] 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 ($ in millions)
	2021				2020
Assets
Cash	$	18.0			$	136.0
Accounts receivable		162.0				117.0
Prepaid insurance		12.5				6.5
Inventory		289.0				169.0
Buildings and equipment		420.0				360.0
Less: Accumulated depreciation		(148.0	)			(252.0	)
	$	753.5			$	536.5
Liabilities
Accounts payable	$	92.0			$	111.0
Accrued liabilities		4.5				7.5
Notes payable		50.0				0.0
Bonds payable		100.0				0.0
Shareholders Equity
Common stock		400.0				400.0
Retained earnings		107.0				18.0
	$	753.5			$	536.5

RED, INC. Statement of Income For Year Ended December 31, 2021
($ in millions)
Revenues
Sales revenue				$	2,200.0
Expenses
Cost of goods sold	$	1,584.0
Depreciation expense		48.0
Operating expenses		429.0			2,061.0
Net income				$	139.0

Additional information from the accounting records:

1. During 2021, $220.0 million of equipment was purchased to replace $160.0 million of equipment (95.0% depreciated) sold at book value.
2. In order to maintain the usual policy of paying cash dividends of $50.0 million, it was necessary for Red to borrow $50.0 million from its bank.

Required: Prepare the T-account for Red, Inc.