5 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 ($ in millions) 5 Dints 2021 2020 Assets Cash $ 36 $142 Accounts receivable 209 144 eBook Prepaid insurance 12 8 Inventory 260 187 Heferences Buildings and equipment 424 362 Less: Accumulated depreciation (131) (252) $810 $591 Liabilities Accounts payable $ 99 $124 Accrued liabilities 11 14 Notes payable 62 e Bonds payable 147 a Shareholders Equity Common stock 412 412 Retained earnings 79 41 5810 $ 591 c raw RED, INC. < Prev 5 of 5 # Next RED, INC. Statement of Income) For Year Ended December 31, 2021 (5 in millions). Revenues Sales revenue $2,200 Expenses Cost of goods sold $1,528 Depreciation expense 47 Operating expenses 525 2,100 Net income $ 100 OK rices Additional information from the accounting records a. During 2021, $272 million of equipment was purchased to replace $210 million of equipment (80% depreciated) sold at book value. b. In order to maintain the usual policy of paying cash dividends of $62 million, it was necessary for Red to borrow $62 million from its bank. Required: Prepare the statement of cash flows for Red, Inc., using the indirect method to report operating activities. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) RED, INC. RED, INC. Statement of Cash Flows For year ended December 31, 2021 ($ in millions) Cash flows from operating activities Adjustments for noncash effects Changes in operating assets and liabilities Net cash flows from operating activities Cash flows from investing activities: Net cash flows from investing activities Cash flows from financing activities 5 Net cash flows from operating activities Cash flows from investing activities mces 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 uome