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 $ 29 $ 114 Accounts receivable 188 137 Prepaid insurance Inventory 252 180 Buildings and equipment 453 355 Less: Accumulated depreciation (124) 245) $812 547 Liabilities Accounts payable $ 95 $ 110 Accrued liabilities 13 20 Notes payable Bonds payable 162 Shareholders' Equity Common stock 405 405 Retained earnings 12 $ 812 547 55 82 $ 95 Liabilities Accounts payable Accrued liabilities Notes payable Bonds payable Shareholders' Equity Common stock Retained earnings 162 405 $ 812 RED, INC. Statement of Income For Year Ended December 31, 2021 (5 in millions) Revenues Sales revenue $2,030 Expenses Cost of goods sold $1,430 Depreciation expense Operating expenses 434 1,905 Net income $ 125 Additional information from the accounting records. 0. During 2021, $278 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 $55 million, it was necessary for Red to borrow $55 million from its bank Prepare the statement of cash flows of Red, Inc., using the direct method to report operating activities, (Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.) RED, INC. Statement of Cash Flows For year ended December 31, 2021 ($ in millions) Cash flows from operating activities: Cash inflows: From customers Cash outflows: To suppliers of goods For operating expenses 0 Net cash flows from operating activities Cash flows from investing activities: Net cash flows from investing activities Cash flows from financing activities: From customers Cash outflows: To suppliers of goods For operating expenses 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