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. 175 REO, INC Comparative Balance Sheets December 31, 2021 and 2020 (5 in millions) 2021 2020 Assets Cash $ 24 $ 110 Accounts receivable 178 132 Prepaid insurance 7 3 Inventory 285 Buildings and equipment 400 350 Less: Accumulated depreciation (119) 240) 5.775 5 530 Llabilities Accounts payable $ 82 $ 100 Accrued liabilities 6 11 Notes payable 50 0 Bonds payable 160 Shareholders' Equity Con stock 400 400 Betained rannings 72 19 5.775 $530 0 RED, INC. Statement of Income For Year Ended December 31, 2021 ($ in millions) Revenues Sales revenue $2,000 Expenses Cost of goods sold $1,400 Depreciation expense 50 Operating expenses 442 1,897 Net Income $ 103 Additional information from the accounting records a. During 2021, 6230 million of equipment was purchased to replace $180 million of equipment (95% depreciated) sold at book value. b. In order to maintain the usual policy of paying cash dividends of $50 million, it was necessary for Red to borrow $50 million from its bank Required: Prepare the statement of cash flows for Red, Inc., using the indirect method to report operating activities (Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions (ie., 10,000,000 should be entered os 101 RED, INC. Statement of Cash Flows For year ended December 31, 2021 ($ 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 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