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Return to question Comparative balance sheets for 2018 and 2017, a statement of income for 2018, and additional information from the accounting records of Red,
Return to question Comparative balance sheets for 2018 and 2017, a statement of income for 2018, and additional information from the accounting records of Red, Inc., are provided below. RED, Comparative Balance Sheets December 2018 and 2017 ( in i Assets Cash Accounts receivable Prepaid insurance Inventory Buildings and equipment Less Accumulated depreciation Liabilities Accounts payable Aerud expenses payable Notes payable Bonds payable Shareholders quity Common stock Retained earnings 865 S620 REDINCI statement of theame For Yrded Dec 201 Revendes Sales revenue Return to questi RED, INC. Statement of Income For Year Ended December 31, 2018 is in millions) Revenues Sales revenue $2,170 Expenses Cost of goods sold $1,469 Depreciation expense Operating expenses 2,071 Net income Additional information from the accounting records: a. During 2018, $267 million of equipment was purchased to replace $200 million of equipment (95% depreciated) sold at book value. b. In order to maintain the usual policy of paying cash dividends of $67 million, it was necessary for Red to borrow $67 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 (l.e., 10,000,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.) Answer is not complete. RED, INC. X Answer is not complete. RED, INC. Statement of Cash Flows For year ended December 31, 2018 (5 in millions) Cash flows from operating activities: Cash inflows: From customers 2,127 Cash outflows: For operating expenses 520 X To suppliers of goods 2,647 Net cash flows from operating activities Cash flows from investing activities: Purchase of equipment Sale of equipment Net cash flows from investing activities Cash flows from financing activities: Issuance of bonds payable Issuance of note payable Payment of cash dividends Not rachflure from financinn artition
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