Comparative balance sheets for 2018 and 2017, a statement of income for 2018, and additional information from the accounting records of Blue, Inc., are provided below.

Blue, Inc. Comparative Balance Sheets December 31, 2018 and 2017 ($ in millions)
	2018	2017
Assets
Cash	$ 24	$110
Accounts receivable	178	132
Prepaid insurance	7	3
Inventory	285	175
Buildings and equipment	400	350
Less: Accumulated depreciation	(119)	(240)
	$775	$530
Liabilities
Accounts payable	$ 87	$100
Accrued expenses payable	6	11
Notes payable	50	0
Bonds payable	160	0
Shareholders Equity
Common stock	400	400
Retained earnings	72	19
	$775	$530

Blue, Inc. Statement of Income For Year Ended December 31, 2018 ($ in millions)
Revenues
Sales revenue		$2,000
Expenses
Cost of goods sold	$1,400
Depreciation expense	50
Operating expenses	447	1,897
Net income		$ 103

Additional information from the accounting records:

1. During 2018, $230 million of new equipment was purchased to replace $180 million (original cost) of equipment (95% depreciated) sold at book value.
2. 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.
3. Assume that Accounts Payable is used exclusively for the purchase of Inventory
4. Accrued Expenses Payable and Prepaid Expenses are used with Operating Expenses.
5. During 2018, $160 million of Bonds were sold at par value receiving cash from the sale.

Required:

Using Excel, prepare Statements of Cash Flows of Blue, Inc., for the year ended December 31, 2018. Present cash flows from operating activities using the direct method AND the indirect method. Remember that the Investing and Financing Activities section of each statement will be identical. Students when complete will have prepared two statements