- Comparative Balance Sheets For 2021 And 2020 A Statement Of Income For 2021 And Additional Information From The Accoun 1 (57.14 KiB) Viewed 22 times
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 2920 ($ in millions) 2821 2920 Assets Cash $ 25 $ 112 Accounts receivable 188 133 8 4 Prepaid insurance Inventory 287 176 Buildings and equipment 482 351 Less: Accumulated depreciation (120) (241) Liabilities Accounts payable Accrued liabilities Notes payable Bonds payable Shareholders' Equity Common stock Retained earnings RED, INC.
Statement of Income For Year Ended December 31, 2821 ($ in millions) Revenues Sales revenue $2,018 Expenses Cost of goods sold $1,414 41 Depreciation expense Operating expenses Net income 449 1,904 $ 106 Additional information from the accounting records: a. During 2021, $231 million of equipment was purchased to replace $180 million of equipment (90% depreciated) sold at book value. b. In order to maintain the usual policy of paying cash dividends of $51 million, it was necessary for Red to borrow $51 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 (1.e., 10,000,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.) $782 $88 7 51 161 481 74 $782 $ 535 $ 102 13 8 8 481 19 $ 535
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.
Statement of Cash Flows For year ended December 31, 2021 ($ in millions) Cash flows from operating activities: Cash inflows: From customers For operating expenses To suppliers of goods Net cash flows from operating activities S Cash flows from investing activities: Sale of equipment Purchase of equipment Net cash flows from investing activities Cash flows from financing activities: Payment of dividends Issuance of note payable Issuance of bonds payable Net cash flows from financing activities Net increase (decrease) in cash Cash balance, January 1 Cash balance, December 31 Cash outflows: 333 0 0 0 0 0