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:

RED, INCORPORATED

Comparative Balance Sheets

December $31,2024$ and $2023($$ in millions$)$

$20242023$

Assets

Cash $ $44$ $ $152$

Accounts receivable $198152$

Prepaid insurance $125$

Inventory $325195$

Buildings and equipment $440370$

Less: Accumulated depreciation $(139)(260)$

$ $880$ $ $614$

Liabilities

Accounts payable $ $107$ $ $140$

Accrued liabilities $1116$

Notes payable $700$

Bonds payable $1810$

Shareholders$$ Equity

Common stock $420420$

Retained earnings $9138$

$ $880$ $ $614$

RED, INCORPORATED

Statement of Income

For Year Ended December $31,2024$

$($$ in millions$)$

Revenues

Sales revenue $ $2,200$

Expenses

Cost of goods sold $ $1,482$

Depreciation expense $50$

Operating expenses $5452,077$

Net income $ $123$

Additional information from the accounting records:

During $2024,$ $$250$ million of equipment was purchased to replace $$180$ million of equipment $(95\%$ depreciated$)$ sold at book value.

In order to maintain the usual policy of paying cash dividends of $$70$ million, it was necessary for Red to borrow $$70$ million from its bank.

Required:

Prepare the statement of cash flows for Red, Incorporated, using the indirect method to report operating activities.

Note: Cash outflows should be indicated with a minus sign. Enter your answers in millions $($i$.$e$.,10,000,000$ should be entered as $10).$