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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 Assets Cash RED, INC. Comparative Balance sheets December 31, 2021 and 2020 (5 in millions) Accounts receivable 2021 2020 $ 11.6 161.9 Prepaid insurance 14.4 $185.1 108.0 7.4 Inventory 281.0 147.0 Buildings and equipment 436.0 362.0 Less: Accumulated depreciation (146.0) (253.0) $750.0 $556.5 Liabilities Accounts payable $99.0 $114.5 Accrued liabilities 12.0 Notes payable. 100.0 Bonds payable Shareholders' Equity Common stock Retained earnings 57.0 $ 758.0 $ 556.5 90.0 400.0 16.0 0.0 400.0 26.0 0.0 RED, INC. Statement of Incone For Year Ended December 11, 2021 (in millions) Revenues sales revenue $2,900.0 Expenses Cost of goods sold $2,000.0 Depreciation expense 45.0 Operating expenses 636.0 2,769.0 Net income $131.0 Additional information from the accounting records: a. During 2021, $234.0 million of equipment was purchased to replace $160.0 million 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 Required: Prepare the T-account for Red, Inc. (Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).) Beg Bal Operating Activities: Cash (Statement of Cash Flows) Investing Activities: Financing Activities: End Bal Accounts Receivable Deg. Bal Prepaid Insurance Beg Bal End Rai End. Bal Inventory Bng. Bai Buildings and Equipment Beg Bal End. Bal End. Bal Accumulated Depreciation Accounts Payable Beg Ba Beg Bal End Ba End. Bal Accrued Liabilities eg Ra Notes Payable Beg Ba End Ba End. Bal Bonds Payable Sales Ong Ba Beg Bal End Ba End. Bal Cost of Goods Sold Depreciation Expense Beg Bad Beg Bal Cad Bat End. Bal Operating Expenses Net Income (Income Summary) Boy Bat Beg Bal Net Income Ciril Bad End. Bal Ratained Earnings Common Stock ey a Bog Bal Cxd. Bat End. Bal Required: Prepare the statement of cash flows (direct method) for Red, Inc. Use the T-account method to assist in your analysis. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions rounded to 1 decimal place (l.e., 5,500,000 should be entered as 5.5).) RED, INC. Statement of Cash Flows For year ended December 31, 2021 (5 in millions) Cash flows from operating activities Cash inflows Cash outflows Net cash flows from operating activities Cash flows from investing activities $ 0.0 Net cash flows from investing activities Cash Bows from financing activities Net cash flows from financing activities Net increase (decrease) in cash Cash balance, January 1 Cash balance, December 311 0.0 0.0 0.0 $ 00

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