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 $ 30 $ 122 Accounts receivable 190 138 Prepaid insurance 13 9 Inventory 254 181 Buildings and equipment 455 356 Less: Accumulated depreciation (125) (246) $ 817 $ 560 Liabilities Accounts payable $ 97 $ 112 Accrued liabilities 12 21 Notes payable 36 0 Bonds payable 162 0 Shareholders' Equity Common stock 406 406 Retained earnings 104 21 $ 817 $ 560 30 RED, INC. Statement of Income For Year Ended December 31, 2021 ($ in millions) Revenues Sales revenue $2,080 Expenses Cost of goods sold $1,444 Depreciation expense 31 Operating expenses 486 1,961 Net income $ 119 Additional information from the accounting records: a. During 2021, $289 million of equipment was purchased to replace $190 million of equipment (80% depreciated) sold at book value. b. In order to maintain the usual policy of paying cash dividends of $36 million, it was necessary for Red to borrow $36 million from its bank. Required: Prepare the statement of cash flows for Red, Inc., using the indirect method to report operating activities. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) RED, INC. Statement of Cash Flows For year ended December 31, 2021 ($ in millions) Cash flows from operating activities: Adjustments for noncash effects: Changes in operating assets and liabilities: $ 0 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