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 35 $ 134 Accounts receivable 200 143 Prepaid insurance 5 3 Inventory 307 186 Buildings and equipment 422 361 Less: Accumulated depreciation (130) (251) $ 839 $ 576 Liabilities Accounts payable $ 98 $ 122 Accrued liabilities 4 9 Notes payable 61 0 Bonds payable 173 0 Shareholders' Equity Common stock 411 411 Retained earnings 92 34 $ 839 $ 576 RED, INC. Statement of Income For Year Ended December 31, 2021 ($ in millions) Revenues Sales revenue $2,110 Expenses Cost of goods sold $1,424 Depreciation expense 41 Operating expenses 526 1,991 Expenses Cost of goods sold Depreciation expense Operating expenses Net income $1,424 41 526 1,991 119 $ Additional information from the accounting records: a. During 2021, $241 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 $61 million, it was necessary for Red to borrow $61 million from its bank. Required: Prepare the statement of cash flows of Red, Inc., using the direct method to report operating activities. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.) RED, INC. Statement of Cash Flows For year ended December 31, 2021 ($ in millions) Cash flows from operating activities: Cash inflows: From customers $ 2,053 Cash outflows: To suppliers of goods (1,569) For operating expenses (533) $ (49) Net cash flows from operating activities Cash flows from investing activities: (49) Net cash flows from operating activities Cash flows from investing activities: Purchase of equipment Sale of equipment (241) 18 (223) Net cash flows from investing activities Cash flows from financing activities: Issuance of note payable Issuance of bonds payable Payment of dividends 61 173 (61) 173 (99) Net cash flows from financing activities Net increase (decrease) in cash Cash balance, January 1 Cash balance, December 31 134 $ 35