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 $ 37 $ 122 Accounts receivable 210 145 Prepaid insurance 11 9 Inventory 270 188 Buildings and equipment 426 363 Less: Accumulated depreciation (132) (253) $ 822 $ 574 Liabilities Accounts payable $ 100 $ 126 Accrued liabilities 10 16 Notes payable 63 0 Bonds payable 176 Shareholders' Equity Common stock 413 413 Retained earnings 60 19 $ 822 $ 574 RED, INC. Statement of Income For Year Ended December 31, 2021 ($ in millions) Revenues Sales revenue $2,210 Expenses Cost of goods sold $1,515 Depreciation expense 41 Operating expenses 550 2,106 Net income $ 104 Additional information from the accounting records: a. During 2021, $243 million of equipment was purchased to replace $180 million of equipment (90% depreciated) sold at book value. b. In order to maintain the usual policy of paying cash dividends of $63 million, it was necessary for Red to borrow $63 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 (i.e., 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 (S in millions) Cash flows from operating activities: Cash inflows: From customers $ 2,355 Cash outflows. 1,623 To suppliers of goods For operating expenses $ 3,978 Net cash flows from operating activities Cash flows from investing activities: Purchase of equipment Sale of equipment 0 Net cash flows from investing activities Cash flows from financing activities: Issuance of note payable Issuance of bonds payable Payment of dividends 0 3,978 Net cash flows from financing activities Net increase (decrease) in cash Cash balance, January 1 Cash balance, December 31 $ 3,978