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	$ 29	$ 114
Accounts receivable	188	137
Prepaid insurance	14	6
Inventory	252	180
Buildings and equipment	453	355
Less: Accumulated depreciation	(124)	(245)
	$ 812	$ 547
Liabilities
Accounts payable	$ 95	$ 110
Accrued liabilities	13	20
Notes payable	25	0
Bonds payable	162	0
Shareholders Equity
Common stock	405	405
Retained earnings	112	12
	$ 812	$ 547

RED, INCORPORATED
Statement of Income
For Year Ended December 31, 2024
($ in millions)
Revenues
Sales revenue		$ 2,030
Expenses
Cost of goods sold	$ 1,430
Depreciation expense	41
Operating expenses	434	1,905
Net income		$ 125

Additional information from the accounting records:

During 2024, $278 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 $25 million, it was necessary for Red to borrow $25 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).