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Required information [The following information applies to the questions displayed below.] Comparative balance sheets for 2018...

Required information

[The following information applies to the questions displayed below.]

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, INC.
Comparative Balance Sheets
December 31, 2018 and 2017 ($ in millions)
2018 2017
Assets
Cash $ 28.0 $ 124.0
Accounts receivable 158.0 120.0
Prepaid insurance 10.0 5.0
Inventory 266.0 162.0
Buildings and equipment 379.0 335.0
Less: Accumulated depreciation (98.0 ) (235.0 )
$ 743.0 $ 511.0
Liabilities
Accounts payable $ 84.0 $ 95.0
Accrued expenses payable 3.0 5.0
Notes payable 50.0 0.0
Bonds payable 155.0 0.0
ShareholdersEquity
Common stock 400.0 400.0
Retained earnings 51.0 11.0
$ 743.0 $ 511.0
RED, INC.
Statement of Income
For Year Ended December 31, 2018
($ in millions)
Revenues
Sales revenue $ 1,820.0
Expenses
Cost of goods sold $ 1,274.0
Depreciation expense 34.0
Operating expenses 422.0 1,730.0
Net income $ 90.0

Required:
Prepare the statement of cash flows (direct method) for Red, Inc. Use the T-account method to assist in your analysis.

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Statement of Cash Flow PARTICULARS Amount $(36.00) Cash from Operating Activity(See Below) Cash from Financing Activity Notes Payable inflow Bonds Payable inflow Payment of dividend 50.00 155.00 (50.00) $ 155.00 Cash from investing activity Activity Building purchase Net cash Movement during the Year ADD: opening cash Balance Cash Balance as on 31-12-2018 215.00 S(215.00) $ (96.00) $ 124.00 $ 28.00 CASH FROM OPERATING ACTIVITY INFLOW: Sales Revenue Less: Increase in Account Receivables$ Revenue from Sales(A $1,820.00 38.00 1,782.00 OUTFLOW: Payment to suppliers for Goods Cost of goods Sold Add: increase in inventory Purchase Add: Decrease in AP Payment to Suppliers for goods(B) $1,274.00 104.00 $1,378.00 11.00 $ 1,389.00 Payment to suppliers for Expenses Operating Expenses ADD: Decrease in Accrued Exp Payable ADD: Increase in Prepaid Exp Payment to Suppliers of exp (C.) 422.00 $ 2.00 5.00 429.00 NET INFLOW/(OUTFLOW)IA-(B+C)H (36.00)

Building And Equipments Balance as on 1-1-2018 Assets Dispose off Closing Balance Assets Purchased 335.00 $(171.00) $(379.00) $(215.00) Accumlated Dep: Balance as on 1-1-2018 Dep for the year 235.00 34.00 269.00 98.00 171.00 Less Accumlated dep on 31-12-2018 Assets dispose off during the year Inventory: Balance as on 1-1-2018 Less: Balance on 31-12-2018 Credit Purchase 162.00 $(266.00) $(104.00) Accounts Payable Balance on 1-1-2018 Add: increase in Inventory balance 95.00 104.00 199.00 (84.00) 115.00 Less Closing Balance Cash Paid to suppliers Retained Earning Balance as on 1-1-2018 Addition for profit Less: Closing Balance on 31-1-2-2018 Dividend Paid 11.00 90.00 (51.00 50.00

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