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 Assets Cash Accounts receivable Prepaid insurance Inventory Buildings and equipment Less: Accumulated depreciation Liabilities Accounts payable Accrued expenses payable Notes payable Bonds payable Shareholders' Equity Common stock Retained earnings Revenues Sales revenue Expenses Cost of goods sold Depreciation expense Operating expenses Net income $ $1,414 41 460 RED, INC. Statement of Income For Year Ended December 31, 2018 ($ in millions) 28 184 13 250 451 (123) $ 803 93 12 54 172 404 68 $803 $2,020 1,915 $ 105 2017 $114 136 8 179 354 (244) $ 547 $108 18 0 0 404 17 $ 547

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. Additional information from the accounting records: a. During 2018,$277 million of equipment was purchased to replace $180 million of equipment (908 depreciated) sold at book value. b. In order to maintain the usual policy of paying cash dividends of $54 million, it was necessary for Red to boriow $54 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 million (i.e., 10,000,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.)