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)20212020AssetsCash$28$114Accounts receivable184136Prepaid insurance138Inventory250179Buildings and equipment451354Less: Accumulated depreciation(123)(244)$803$547LiabilitiesAccounts payable$93$108Accrued liabilities1218Notes payable320Bonds payable1720Shareholders'EquityCommon stock404404Retained earnings9017$803$547

RED, INC.

Statement of Income

For Year Ended December 31, 2021($ in millions)RevenuesSales revenue$2,020ExpensesCost of goods sold$1,414Depreciation expense41Operating expenses4601,915Net income$105

Additional information from the accounting records:

1. During 2021, $277 million of equipment was purchased to replace $180 million of equipment (90% depreciated) sold at book value.
2. In order to maintain the usual policy of paying cash dividends of $32 million, it was necessary for Red to borrow $32 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).)