38.

I'm stuck on operating expense (my answer is wrong) please fix this and if you can solve the rest part a. and part b. that will be helpful. and include the formulas that guide where you got got the numbers from.

21 HW Help S 38 Comparative records of Red, Inc., are provided below. balance sheets for 2018 and 2017, a statement of income for 2018, and additional information from the accounting 0.35 points Comparative Balance Sheets December 31, 2818 and 2817 (S in millions) 28182817 Assets Cash Accounts receivable Prepaid insurance Inventory Buildings and equipment Less: Accumulated depreciation(126) eBook 31 S 158 239 255 215 492 100 357 (247) $ 873 $ 681 Liabilities Accounts payable Accrued expenses payable Notes payable Bonds payable Shareholders Equity Common stock Retained earnings $ 85 114 148 487487 5 873 601 21 HW Help S 38 Statement of Income For Year Ended December 31, 2818 0.35 points Revenues Sales revenue Expenses Cost of eoods sold Depreciation expense Operating expenses Net income $2,208 $1,5e0 23 eBook Print Roferences 528 2,043 $ 157 Additional information from the accounting records: a. During 2018, $315 million of equipment was purchased to replace $180 million of equipment (80% b. In order to maintain the usual policy of paying cash dividends of $57 depreciated) sold at book value million, it was necessary for Red to borrow $57 million from its bank 21 HW Help Save & 38 bank 0.35 points Required: Prepare the statement of cash flows of Red, Inc, using the direct method to report operating activbes (Enter your answers In milillions (Le., 10,000,000 should be entered as 10). Amounts to be deducted should be Indicated with a minus sign.) Cash tows from operating activities Cash inflowa Print From customers Cash outhiows To suppliers of goods For operating expenses References 16 Net cash Bows from operating ectivithies Cash fiows from investing activities Purohase of equipment Sals of equipment Net cash Rows from inveaning actvities Cesh fows from Enanding activises ssuanee of oonds payable Payment of cesn dividends Net cash flowa from inanging acfivibies Net increese (deerease) in casn 16 Cash balance, January 1 18