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 Accounts receivable Inventory Buildings and equipment Less: Accumulated depreciation(132) $ 48 131 145 188 363 210 270 426 (253) $ 822 574 Accounts payable Salaries payable Notes payable Bonds payable Shareholder Common stock Retained earnings 100 10 63 176 126 16 qui 413 19 $ 822 574 413 RED, INC. Statement of Income For Year Ended December 31, 2018 ($ in millions) Revenues: $2,210 Sales revenue Expenses: Cost of goods sold 1,515 Depreciation expense 41 550 2,106 $ 104 Salaries expense Net income Additional information from the accounting records a. During 2018, $243 million of equipment was purchased to replace $180 million of equipment (90% depreciated) sold at book value b. In order to maintain the usual policy of paying cash dividends of $63 million, it was necessary for Red to borrow $63 million from its bank. Required Prepare the statement of cash flows for Red, Inc., using the indirect method to report operating activities. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.) RED, INC. Statement of Cash Flows For year ended December 31, 2018 ($ in millions) Cash flows from operating activities: 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: Net cash flows from financing activities Net increase (decrease) in cash Cash balance, January 1 Cash balance, December 31