2021 2020 Assets Cash $ 31 $ 150 Accounts receivable 255 239 Prepaid insurance 6 2 Inventory 215 100 Buildings and equipment 492 357 Less: Accumulated depreciation (126) (247) $ 873 $ 601 Liabilities Accounts payable $ 85 $ 114 Accrued liabilities 5 9 Notes payable 32 6 Bonds payable 148 8 Shareholders' Equity Common stock 407 407 Retained earnings 196 71 $ 873 $ 601 RED, INC. Statement of Income For Year Ended December 31, 2021 ($ in millions) Revenues Sales revenue $2,200 Expenses Cost of goods $1,500 sold Depreciation 23 expense Operating 520 2,043 expenses Net income $ 157 Additional information from the accounting records: a. During 2021. $315 million of equipment was purchased to replace $180 million of equipment (80% depreciated) sold at book value. . In order to maintain the usual policy of paying cash dividends of $32 million. It was necessary for Red to borrow $32 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 (i.e., 10,000,000 should be entered as 10).) RED, INC. Statement of Cash Flows For year ended December 31, 2021 (S in millions) Cash flows from operating activities: Adjustments for noncash effects: Changes in operating assets and liabilities: $ 0 Net cash flows from operating activities Cash flows from investing activities: 0 Net cash flows from investing activities Cash flows from financing activities 0 Net cash flows from financing activities Net increase (decrease) in cash Cash balance, January 1 Cash balance, December 31 0 0