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. $ 35 144 RED, INC Comparative Balance Sheets December 31, 2021 and 2020 (5 in millions) 2021 2920 Assets Cash $142 Accounts receivable 209 Prepaid insurance 12 8 Inventory 250 187 Buildings and equipment 424 362 Less: Accumulated depreciation (131) (252) sle $ 591 Liabilities Accounts payable 599 $ 124 Accrued liabilities 11 14 Notes payable 62 e Bonds payable Shareholders' Equity Common stock 412 412 Retained earnings 79 41 $ 810 $ 591 147 RED, INC Statenent of Income For Year Ended December 31, 2021 (5 in millions) Revenues Sales revenue $2,200 Expenses Cost of goods sold $1,528 Depreciation expense 42 Operating expenses 525 2.100 Net Income 5100 a. During 2021, $272 million of equipment was purchased to replace $210 million of equipment (80% depreciated) sold at book value b. In order to maintain the usual policy of paying cash dividends of $62 million, it was necessary for Red to borrow $62 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 (1.0., 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 (5 in millions) Cash flows from operating activities: Cash inflows Cash outflows Net cash flows from operating activities Cash flows from westing activities $ 0 Net cash flows from investing activities 0 NCU, Statement of Cash Flows For year ended December 31, 2021 ($ in millions) Cash flows from operating activities: Cash inflows: Cash outflows: Net cash flows from operating activities Cash flows from investing activities: $ 0 Net cash flows from investing activities Cash flows from financing activities: 0 0 Net cash flows from financing activities Net increase (decrease) in cash Cash balance, January 1 Cash balance, December 31 0 $ 0