Comparative balance sheets for 2021 and 2020, a statement of income for 2021, and additional information from the accounting records of Red, Inc., are provided below. 5 353 RED, INC. Comparative Balance Sheets December 31, 2021 and 2020 ($ in millions) 2021 2020 Assets Cash $ 37 $136 Accounts receivable 220 135 Prepaid insurance 12 Inventory 291 178 Buildings and equipment 386 Less: Accumulated depreciation (122) (243) $ 824 $ 564 Liabilities Accounts payable $ 90 $ 106 Accrued liabilities 11 13 Notes payable Bonds payable Shareholders' Equity Common stock 403 403 Retained earnings $ 824 $ 564 73 210 37 RED, INC. Statement of Income For Year Ended December 31, 2021 ($ in millions) Revenues Sales revenue $2,020 Expenses Cost of goods sold $1,412 Depreciation expense Operating expenses 471 1,952 Net income Additional information from the accounting records: a. During 2021, $233 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 $73 million, it was necessary for Red to borrow $73 million from its bank. Required: Prepare the statement of cash flows for Red, Inc., using the indirect method to report operating activities. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) RED, INC. Statement of Cash Flows For year ended December 31, 2021 ($ in millions) Cash flows from operating activities: For year ended December 31, 2021 ( 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