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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. 400 RED, INC. Comparative Balance Sheets December 31, 2021 and 2020 ($ in millions) 2021 2020 Assets Cash 5 24 $ 110 Accounts receivable 178 132 Prepaid insurance 7 Inventory 285 175 Buildings and equipment 350 Lessi Accumulated depreciation (119) 240) $ 775 $530 Liabilities Accounts payable $ 87 $ 100 Accrued liabilities 6 11 Notes payable 50 0 Bonds payable 160 Shareholders' Equity Conson Stock 400 Retained earnings 22 19 3530 100 Liabilities Accounts payable Accrued liabilities Notes payable Bonds payable Shareholders' Equity Common stock Retained earnings $ 87 6 50 160 $ 100 11 @ 400 72 $ 775 400 19 $ 530 RED, INC. Statement of Income For Year Ended December 31, 2021 ($ in millions) Revenues Sales revenue $2,000 Expenses Cost of goods sold $1,400 Depreciation expense 50 Operating expenses 447 1 897 Net income $ 103 Additional information from the accounting records Additional information from the accounting records. a. During 2021, $230 million of equipment was purchased to replace $180 million of equipment (95% depreciated) sold at book value. b. In order to maintain the usual policy of paying cash dividends of $50 million, it was necessary for Red to borrow $50 million from its bank Required: Prepare the statement of cash flows for Red, Inc., using the Indirect method to report operating activities (Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions (ie., 10,000,000 should be entered as 10).) RED, INC. Statement of Cash Flows For year ended December 31, 2021 ($ in millions) Cash flows from operating activities: Net income Adjustments for noncash effects Changes in operating assets and liabilities: S 0 Net cash flows from operating activities Cash flows from investing activities

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