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) Assets Cash Accounts receivable. Prepaid insurance Inventory Buildings and equipment Lessi Accumulated depreciation Liabilities Accounts payable: Accrued liabilities Notes payable Bonds payable Shareholders' Equity Common stock. Retained earnings 2021 2020 $37.65126.1 175.0 120.0 9.4 6.4 317.0 179.0 430.0 352.0 (159.0) (246.0) $ 810.0 $539.5 $76.0 $93.5 14.0 16.0 100.0 0.0 165.0 0.0 400.0 400.0 55.0 $ 810.0 28.0 $537.5 RED, INC. Statement of Income For Year Ended December 31, 2021 Revenues ts in millions) Sales revenue Expenses Cost of goods sold. $2,170.0 Deprecistion expense Operating expenses Net incone $3,100.0 65.0 73810 2.923.0 $127.0 Additional information from the accounting records: a. During 2021, $238.0 million of equipment was purchased to replace $160.0 milion 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