Comparative balance sheets for 2018 and 2017, a statement of income for 2018, and additional information from the accounting records of Red, Inc., are provided below. RED, INC. Comparative Balance Sheets December 31, 2018 and 2017 ($ in millions) 2018 2017 Assets Cash 24 110 Accounts receivable 178 132 Prepaid insurance Inventory Buildings and equipment Less: Accumulated depreciation 7 3 285 175 400 350 (119) (240) $ 775 $ 530 Liabilities $ 87 $ 100 Accounts payable Accrued expenses payable Notes payable Bonds payable Shareholders' Equity Common stock 11 6 50 0 160 0 400 400 Retained earnings 72 19 $ 530 $ 775 RED, INC Statement of Income For Year Ended December 31, 2018 ($ in millions) Revenues Sales revenue $2,000 Expenses Cost of goods sold Depreciation expense Operating expenses $1,400 50 447 1,897 S 103 Net income Additional information from the accounting records: a. During 2018, $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 $50 million from its bank Required: Prepare the statement of cash flows of Red, Inc., using the direct method to report operating activities. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.) RED, INC Statement of Cash Flows For year ended December 31, 2018 ($ 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: Net cash flows from financing activities Net increase (decrease) in cash Cash balance, January 1 Cash balance, December 31