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 $28 $114 Accounts receivable 184 136 Prepaid insurance 13 Inventory 250 179 Buildings and equipment 451 354 Less: Accumulated depreciation (123) (244) $803 $ 547 Liabilities Accounts payable 5.93 $ 108 Accrued liabilities 12 15 Notes payable Bonds payable Shareholders' Equity Connon stock. Retained earnings: 54 172 0 404 404 68 17 $803 $542 RED, INCORPORATED Statement of Income For Year Ended December 31, 2024) (5 in millions) Revenues Sales revenue Expenses $2,020 RED, INCORPORATED Statement of Income For Year Ended December 31, 2004 (in millions) $803 $547 Revenues Sales revenue $2,020 Expenses Cost of goods sold $1,414 Depreciation expense 41 Operating expenses 660 1,915 Net income $ 105 Additional Information from the accounting records: a. During 2024, $277 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 $54 million, it was necessary for Red to borrow $54 million from its bank. Required: Prepare the statement of cash flows of Red, Incorporated, for the year ended December 31, 2024, using the direct method to report operating activities. Note: Enter your answers in millions (.e., 10,000,000 should be entered as 10). Cash outflows should be indicated with a minus sign. RED, INCORPORATED Statement of Cash Flows < Prev 8 of 8 Next > Check my RED, INCORPORATED Statement of Cash Flows For year ended December 31, 2024 ($ in millions) Cash flows from operating activities Cash inflows Cash outflows Net cash flows from operating activities $ 0 Cash flows from investing activities Net cash flows from investing activities Cash flows from financing activities Net cash flows from financing activities Net increase (decrease) in cash 0 0 For year ended December 31, 2024 ($ in millions) Cash flows from operating activities: Cash inflows: Cash outflows Net cash flows from operating activities Cash flows from investing activities: Net cash flows from investing activities Cash flows from financing activities: Net cash flows from financing activities Net increase (decrease) in cash Cash balance, January 1 Cash balance, December 31 69 $ 0 0 0 0 $ 0