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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

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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 (5 in millions) 2018 2017 Assets Cash Accounts receivable Prepaid insurance Twentory Buildings and equipment Less Accumulated depreciation Liabilities Accounts payable Accrued expenses payable Notes payable Bonds payable Shareholders' Equity Common stock Retained earnings RED, INC. Statement of Income For Year Ended December 31, 2018 (5 in millions) Revenues Sales revenge $2,090 wenses Cost of goods sold $1.361 Depreciation expense Operating expenses 596 2,026 Not income $ 64 Additional information from the accounting records During 2018, 5259 million of equipment was purchased to replace $200 million of equipment (95% depreciated sold at book value b. In order to maintain the usual policy of paying cash dividends of $59 million, it was necessary for Red to borrow $59 million from its bank Required: Prepare the statement of cash flows of Red, Inc., using the direct method to report operating activities. (Enter your answers in millions [1... 10,000,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.) RED, INC. Statement of Cash Flows For year ended December 31, 2018 ($ in millions) Cash flows from operating activities: is From customers Cash outflows For operating expenses To suppliers of goods 2056 Net cash flows from operating activities Cash flows from investing activities: Purchase of equipment Sale of equipment Not cash flows from investing activities Cash flows from financing activities: Issuance of bonds payable Issuance of note payable Payment of cash dividends Nel cash flows from financing activities Net increase (decrease) in cash Cash balance, January 1 Cash balance, December 31

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