Comparative balance sheets for 2016 and 2015, a statement of income for 2016, and additional information from the accounting records of Red, Inc., are provided below RED, INC. Comparative Balance Sheets December 31, 2016 and 2015 (S in millions) 2016 2015 Assets Cash Accounts receivable $37 $ 122 210 145 Prepaid insurance Inventory Buildings and equipment 188 426 363 Less: Accumulated depreciation 132) (253) 270 $822 $ 574 Liabilities Accounts payable Accrued expenses payable Notes payable Bonds payable Shareholders' Equity Common stock Retained eanings $ 100 10 63 176 $ 126 16 413 60 413 19 $822 $ 574 RED, INC. Statement of Income For Year Ended December 31, 2016 ($ in millions) Revenues Sales revenue Expenses Cost of goods sold Depreciation expense Operating expenses $2,210 $1,515 550 2,106 Net income S 104 Additional information from the accounting records: During 2016, $243 million of equipment was purchased to replace $180 million of equipment (90% depreciated) sold at book value a. b. In order to maintain the usual policy of paying cash dividends of $63 million, it was necessary for Red to borrow $63 million from its bank