[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 $ 24 $ 110 Accounts receivable 178 132 Prepaid insurance 7 3 Inventory 285 175 Buildings and equipment 400 350 Less: Accumulated depreciation (119) (240) $ 775 $ 530 Liabilities Accounts payable $ 87 $ 100 Accrued liabilities 6 11 Notes payable 50 Bonds payable 160 Shareholders' Equity Common stock 400 400 Retained earnings 72 19 $ 775 $ 530 0 RED, INC. Statement of Income For Year Ended December 31, 2021 ($ in millions) Revenues Sales revenue $2,000 Expenses Cost of goods sold $1,400 Depreciation expense 50 Operating expenses 447 1,897 Net income $ 103 Additional information from the accounting records: a. During 2021, $230 million of equipment was purchased to replace $180 million of equipment (95% depreciated) sold at book value. b. In order to maintain the usual policy of paying cash dividends of $50 million, it was necessary for Red to borrow $50 million from its bank. Required: Prepare the T-account for Red, Inc. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) Required: Prepare the T-account for Red, Inc. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) Cash (Statement of Cash Flows) Beg. Bal. Operating Activities: Investing Activities: Financing Activities: End. Bal. Required information Accounts Receivable Prepaid Insurance Beg. Bal Beg. Bal End. Bal End. Bal Inventory Buildings and Equipment Beg. Bal Beg. Bal End. Bal End. Bal Accumulated Depreciation Accounts Payable Beg. Bal Beg. Bal End. Bal End. Bal Accrued Liabilities Notes Payable Beg. Bal Beg. Bal End. Bal End. Bal Bonds Payable Sales Beg. Bal Beg. Bal End. Bal End. Bal Cost of Goods Sold Depreciation Expense Beg. Bal Beg. Bal End. Bal End. Bal Cost of Goods Sold Depreciation Expense Beg. Bal Beg. Bal End. Bal End. Bal Operating Expenses Net Income (Income Summary) Beg. Bal Beg. Bal End. Bal End. Bal Retained Earnings Common Stock Beg. Bal Beg. Bal End. Bal End. Bal