Comparative balance sheets for 2024 and 2023, a statement of income for 2024, and additional information from the accounting records of Red, Incorporated, are provided below:

RED, INCORPORATED
Comparative Balance Sheets
December 31, 2024 and 2023 ($ in millions)
	2024	2023
Assets
Cash	$ 32	$ 128
Accounts receivable	149	140
Prepaid insurance	8	4
Inventory	301	183
Buildings and equipment	416	358
Less: Accumulated depreciation	(127)	(248)
	$ 779	$ 565
Liabilities
Accounts payable	$ 95	$ 116
Accrued liabilities	7	12
Notes payable	33	0
Bonds payable	170	0
Shareholders Equity
Common stock	408	408
Retained earnings	66	29
	$ 779	$ 565

RED, INCORPORATED
Statement of Income
For Year Ended December 31, 2024
($ in millions)
Revenues
Sales revenue		$ 2,060
Expenses
Cost of goods sold	$ 1,457
Depreciation expense	41
Operating expenses	492	1,990
Net income		$ 70

Additional information from the accounting records:

During 2024, $238 million of equipment was purchased to replace $180 million of equipment (90% depreciated) sold at book value.

In order to maintain the usual policy of paying cash dividends of $33 million, it was necessary for Red to borrow $33 million from its bank.

Required:

Prepare the statement of cash flows for Red, Incorporated, using the indirect method to report operating activities.

Note: Cash outflows should be indicated with a minus sign. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).