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 (S in millions) 2021 2020 Assets Cash $24 $110 Account receivable Prepaid insurance Inventory Building and equipment Less: Accumulated depreciation Total Assets Liabilities Accounts payable 178 132 7 3 285 175 400 350 (119) (240) $775 $530 $87 $100 Accrued liabilities 6 Notes playable 50 0 Bonds payable 160 0 Shareholders Equity Common stock 400 400 Retained earnings 72 19 Total Liabilities $775 $530 Red, Inc. Statement of Income. For Year Ended December 31, 2021 (S in millions) Revenues Sales revenue $2,000 Expenses Cost of good sold $1,400 Depreciation expenses 50 Operating expenses 447 Net Income 1,897 $103 Additional information from accounting records: a. During 2021, $230 million of equipment was purchase 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 flow of Red, Inc., for the years ended December 31, 2021. Present Cash Flows from operating activities by the direct method