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 RED, INCORPORATED Comparative Balance Sheets December 31, 2024 and 2023 ($ in millions) 2024 2023 Assets Cash $ 22 9 $ 214 4 Accounts receivable 115 0 65 0 Prepaid insurance 6 6 4 6 Inventory 281 0 153 0 Buildings and equipment 443 0 375 0 Less Accumulated depreciation (131 0) (263 0) $ 737 5 $ 549 0 Liabilities Accounts payable $ 96 0 $ 108 5 Accrued liabilities 9 5 17 5 Notes payable 100 0 0 0 Bonds payable 100 0 0 0 Shareholders Equity Common stock 400 0 400 0 Retained earnings 32 0 23 0 $ 737 5 $ 549 RED, INCORPORATED Statement of Income For Year Ended December 31, 2024 ($ in millions) Revenues Sales revenue $ 2,600 0 Expenses Cost of goods sold $ 1,950 0 Depreciation expense 58 0 Operating expenses 483 0 2,491 0 Net income $ 109 0 Additional information from the accounting records During 2024, $268 0 million of equipment was purchased to replace $200 0 million of equipment (95 0 depreciated) sold at book value 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 Required Prepare the T account for Red, Incorporated 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)

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[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

[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:

RED, INCORPORATED
Comparative Balance Sheets
December 31, 2024 and 2023 ($ in millions)
	2024	2023
Assets
Cash	$ 22.9	$ 214.4
Accounts receivable	115.0	65.0
Prepaid insurance	6.6	4.6
Inventory	281.0	153.0
Buildings and equipment	443.0	375.0
Less: Accumulated depreciation	(131.0)	(263.0)
	$ 737.5	$ 549.0
Liabilities
Accounts payable	$ 96.0	$ 108.5
Accrued liabilities	9.5	17.5
Notes payable	100.0	0.0
Bonds payable	100.0	0.0
Shareholders Equity
Common stock	400.0	400.0
Retained earnings	32.0	23.0
	$ 737.5	$ 549.

RED, INCORPORATED
Statement of Income
For Year Ended December 31, 2024
($ in millions)
Revenues
Sales revenue		$ 2,600.0
Expenses
Cost of goods sold	$ 1,950.0
Depreciation expense	58.0
Operating expenses	483.0	2,491.0
Net income		$ 109.0

Additional information from the accounting records:

During 2024, $268.0 million of equipment was purchased to replace $200.0 million of equipment (95.0% depreciated) sold at book value.

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.

Required:

Prepare the T-account for Red, Incorporated.

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)