215 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 RED, INC Comparative Balance Sheets December 31, 2021 and 2020 (s in millions) 2021 2020 Assets Cash $38 $ 110 Accounts receivable 146 Prepaid insurance 13 7 Inventory 280 200 Buildings and equipment 428 364 Less: Accumulated depreciation 133) (254) $ 341 5 573 Liabilities Accounts payable $ 101 $ 128 Accrued abilities 12 17 Notes payable 64 Bonds payable 150 Shareholders' Equity Common stock 414 414 Retained earnings 100 14 $ 841 $ 573 0 RED, THC Statement of Income For Vernecer 11.11 RED, INC. Statement of Income For Year Ended December 31, 2021 es in millions) Revenues Sales revenue $2,140 Expenses Cost of goods sold $1,447 Depreciation expense 23 Operating expenses 520 Net Income $ 150 Additional information from the accounting records a During 2021. $244 million of equipment was purchased to replace $180 million pf equipment (80% depreciated) sold at book value. b. In order to maintain the usual policy of paying cash dividends of $64 million, it was necessary for Red to borrow $64 million from its bank Required: Prepare the statement of cash flows of Red, Inc., using the direct method to report operating activities (Enter your answers in millions (.e., 10,000,000 should be entered as 10). Amounts to be deducted should be indicated with a minus slgn.) Prepare the statement of cash flows of Red, Inc., using the direct method to (i.e., 10,000,000 should be entered as 10). Amounts to be deducted shoul RED, INC. Statement of Cash Flows For year ended December 31, 2021 ($ in millions) Cash flows from operating activities. Cash inflows: Cash outflows: Net cash flows from operating activities Cash flows from investing activities: Net cash flows from investing activities Cash flows from financing activities: Cash outflows Net cash flows from operating activities Cash flows from investing activities: Net cash flows from investing activities Cash flows from financing activities: Net cash flows from financing activities Net increase (decrease) in cash Cash balance January 1 Cash balance, December 31