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. 6 453 RED, INC Comparative Balance Sheets December 31, 2021 and 2020 ($ in millions) 2021 2020 Assets Cash $ 29 $ 114 Accounts receivable 188 137 Prepaid insurance 14 Inventory 252 180 Buildings and equipment 355 Less: Accumulated depreciation (124) (245) 5 B12 $ 547 Liabilities Accounts payable $95 110 Accrued liabilities 13 20 Notes payable 55 Bands payable 162 Shareholders' Equity Common stock 405 405 Retained earnings 32 12 $ 812 $ 547 RED, INC. Statement of Income For Year Ended December 31, 2021 (in millions) Revenues Sales revenue 52.030 Expenses Cost of goods sold 51,430 Depreciation expense 41 Operating expenses 434 1.005 Bet income 5 125 Additional information from the accounting records a: During 2021, 5278 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 $55 million, it was necessary for Red to borrow $55 million from its bank points Required: Prepare the statement of cash flows of Red, Inc., using the direct method to report operating activities (i.e., 10,000,000 should be entered as 10). Amounts to be deducted should be indicated with a min eBook RED, INC. Statement of Cash Flows For year ended December 31, 2021 ($ in millions) Cash flows from operating activities Cash inflows: Hint Print Cash outflows: References $ 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 acbvities Net Increase (decrease) in cash Cash balance January 1 Cash balance December 31 $ 0