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 $ 43 $ 138 Accounts receivable 196 151 Prepaid insurance Inventory 302 194 Buildings and equipment 438 369 Less: Accumulated (138) (259) depreciation $ 850 $ 597 Liabilities Accounts payable $ 106 $ 138 Accrued expenses payable 15 Notes payable 69 Bonds payable 154 Shareholders' Equity Common stock 419 419 Retained earnings 94 _25 $ 850 $ 597 RED, INC. Statement of Income For Year Ended December 31, 2018 ($ in millions) Revenues Sales revenue $2,190 Expenses Cost of goods sold $1,471 Depreciation expense 41 Operating expenses 540 2,652 Net income $ 138 a. During 2018, $249 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 $69 million, it was necessary for Red to borrow $69 million from its bank. Required: Prepare the statement of cash flows of Red, Inc. using the Indirect method to report operating activities. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions (I.e., 10,000,000 should be entered as 10).) RED, INC. Statement of Cash Flows For year ended December 31, 2018 ($ 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