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 in millions) 2016 2015 Assets Cash 34 121 Accounts receivable 180 142 Prepaid insurance 12 Inventory 250 185 Buildings and equipment 420 360 Less: Accumulated depreciation (129) (250) 767 564 Liabilities 97 120 Accounts payable Accrued expenses payable 11 14 Notes payable 60 121 Bonds payable Shareholders' Equity Common stock 410 410 Retained earnings 68 20 767 564 RED, INC Statement of Income For Year Ended December 31, 2016 in millions) Revenues $2,100 Sales revenue Expenses Cost of goods sold $1,400 Depreciation expense 41 Operating expenses 551 1,992 108 Net income