Question

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 35 $ 134 Accounts receivable 200 143 Prepaid insurance 5 3 Inventory 307 186 Buildings and equipment 422 361 Less: Accumulated depreciation (130) (251) $ 839 $ 576 Liabilities Accounts payable $ 98 $ 122 Accrued liabilities 4 9 Notes payable 61 0 Bonds payable 173 0 Shareholders' Equity Common stock 411 411 Retained earnings 92 34 $ 839 $ 576 RED, INC. Statement of Income For Year Ended December 31, 2021 ($ in millions) Revenues Sales revenue $2,110 Expenses Cost of goods sold $1,424 Depreciation expense 41 Operating expenses 526 1,991

Answer 1

CashFlow Statemennt
Cashflows from Operating activities
Cash received from Customers (2110+143-200)		2053
Cash Outflows
To suppliers of goods	(1424+307-186+122-98)		-1569
For operating expense	(526+5-3+9-4)			-533
Net cash used in Operating activities				-49
Cash flows from Investing activities
Purchase of Equipment				-241
Sale of equipment					18
Net cash used in Investing activities				-223
Cashflows from Financing activities
Issuance of Notes payable				61
Issuance of bonds payable				173
Dividend paid					-61
Net cash provided from Financing activities				173
Net decrease in cash						-99
Beginning balance of cash					134
Ending balance of cash					35