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 $ 43 $ 138 Accounts receivable 196 151 Prepaid insurance 9 4 Inventory 302 194 Buildings and equipment 438 369 Less: Accumulated depreciation (138) (259) $ 850 $ 597 Liabilities Accounts payable $ 106 $ 138 Accrued liabilities 8 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, 2021 ($ in millions) Revenues Sales revenue $2,190 Expenses Cost of goods sold $1,471 Depreciation expense 41 Operating expenses 540 2,052 Net income $ 138 Additional information from the accounting records: a. During 2021. $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 $69 million from its bank. Required: Prepare the statement of cash flows for Red, Inc., using the indirect method to report operating activities. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) RED, INC. Statement of Cash Flows For year ended December 31, 2021 ($ in millions) Cash flows from operating activities: Net income Adjustments for noncash effects. Changes in operating assets and liabilities: $ 0 Net cash flows from operating activities Cash flows from investing activities: Purchase of equipment Sale of equipment (249) 18 $ 0 Net cash flows from operating activities Cash flows from investing activities: Purchase of equipment Sale of equipment (249) 18 (231) Net cash flows from investing activities Cash flows from financing activities: Issuance of note payable Issuance of bonds payable 69 154 223 (8) Net cash flows from financing activities Net increase (decrease) in cash Cash balance, January 1 Cash balance, December 31 $ (8)