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 $ 26 $ 114 Accounts receivable 203 134 Prepaid insurance 11 Inventory 289 177 Buildings and equipment 384 352 Less: Accumulated depreciation (121) (242) $ 792 $ 541 Liabilities Accounts payable $ 90 $ 104 Accrued liabilities Notes payable Bonds payable Shareholders' Equity Common stock 402 402 Retained earnings 77 20 $ 792 $ 541 10 15 52 161 RED, INC. Statement of Income For Year Ended December 31, 2021 ($ in millions) Revenues Sales revenue $2,010 Expenses Cost of goods sold $1,439 Depreciation expense Operating expenses 4211,901 Net income $ 109 Additional information from the accounting records: a. During 2021, $212 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 $52 million, it was necessary for Red to borrow $52 million from its bank. Required: Prepare the statement of cash flows of Red, Inc., using the direct method to report operating activities. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.) RED, INC. Statement of Cash Flows For year ended December 31, 2021 ($ in millions) Cash flows from operating activities: Cash inflows: From customers Cash outflows: To suppliers of goods For operating expenses needs numbers to the blue boxes only Net cash flows from operating activities Cash flows from investing activities: Sale of equipment Purchase of equipment Net cash flows from investing activities Cash flows from financing activities: Issuance of note payable Issuance of bonds payable E Payment of dividends Net cash flows from financing activities Net increase (decrease) in cash Cash balance, January 1 Cash balance, December 31