Comparative balance sheets for $2024$ and $2023,$ a statement of income for $2024,$ and additional information from the accounting

records of Red, Incorporated, are provided below:

Additional information from the accounting records:

a$.$ During $2024,$$$230$ million of equipment was purchased to replace $$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.$\backslash$table$[[$RED$,$ INCORPORATED$],[$Statement of Cash Flows,$],[$Cash flows from operating activities:,,$],[$Net income,,$],[$Adjustments for noncash effects:,,$],[$Depreciation expense,,$],[,,],[$Changes in operating assets and liabilities:,,$],[$Increase in accounts receivable,,$],[$Increase in prepaid insurance,,$],[$Increase in inventory,,$],[$Decrease in accounts payable,,$],[$Decrease in accrued liabilities,,$],[,,],[$Net cash flows from operating activities,,$],[$Cash flows from investing activities:,,$],[$Sale of equipment,,$],[$Purchase of equipment,,$],[,,],[$Net cash flows from investing activities,,$],[$Cash flows from financing activities:,,$],[$Issuance of note payable,,$],[$Issuance of bonds payable,,$],[$Payment of dividends,,$],[,,],[$Net cash flows from financing activities,,$],[$Net increase $($decrease$)$ in cash,,$],[$Cash balance, January $1,,],[$Cash balance, December $31,,]]$