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. RED, INC. Comparative Balance Sheets December 31, 2021 and 2020 ($ in millions) 2021 2020 Assets Cash $ 39 $ 95 Accounts receivable 228 147 Prepaid insurance 10 5 Inventory 240 201 Buildings and equipment 430 375 Less: Accumulated depreciation (134) (255) $ 813 $ 568 Liabilities Accounts payable $ 102 Accrued liabilities Notes payable 65 Bonds payable Shareholders' Equity Common stock 415 Retained earnings $ 813 $ 568 1024283 | 889542 $ 130 RED, INC. Statement of Income For Year Ended December 31, 2021 ($ in millions) Revenues Sales revenue $2,150 Expenses Cost of goods sold $1,445 Depreciation expense Operating expenses 560 2,037 Net income $ 113 32 Additional information from the accounting records: a. During 2021, $235 million of equipment was purchased to replace $180 million of equipment (85% depreciated) sold at book value. Additional information from the accounting records: a. During 2021, $235 million of equipment was purchased to replace $180 million of equipment (85% depreciated) sold at book value. b. In order to maintain the usual policy of paying cash dividends of $65 million, it was necessary for Red to borrow $65 million from its bank. Required: Prepare the statement of cash flows for Red, Inc., using the indirect method to report operating activities. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) RED, INC. Statement of Cash Flows For year ended December 31, 2021 (S in millions) Cash flows from operating activities: Adjustments for noncash effects: Changes in operating assets and liabilities: Net cash flows from operating activities Cash flows from investing activities: JULCUCIILUL LUISITIUVVS For year ended December 31, 2021 ($ 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