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

Assets cash

Accounts receivable

Prepaid insurance

Inventory

Buildings and equipment

Less: Accumulated depreciation

Liabilities

Accounts payable

Accrued liabilities

Notes payable

Bonds payable

Shareholders' Equity

Common stock

Retained earnings

24

178

7

285

400

(119 )

$ 775

$ 87

6

50

160

400

72

$ 775

2023

$ 110

132

3

175

350

(240 )

530

$ 100

11

400

19

$ 530

RED, INCORPORATED

Statement of Income

For Year Ended December 31, 2024

(s in millions

Revenues

Sales revenue

Expenses

Cost of goods sold

Depreciation expense

Operating expenses

Net income

$ 1,400

50

447

$ 2,000

1,897

$ 103

Additional information from the accountina records:

1. During 2024, $230 million of equipment was purchased to replace $180 million of equipment (95% depreciated) sold at book value.
2. In order to maintain the usual policy of paying cash dividends of $50 million, it was necessary for Red to borrow $50 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 (i.e., 10,000,000 should be entered as 10). Cash outflows should be indicated with a minus sign.

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: Additional information from the accountina records: dditional information from the accounting records: a. During 2024,$230 million of equipment was purchased to replace $180 million of equipment ( 95% depreciated) sold at book value. b. In order to maintain the usual policy of paying cash dividends of $50 million, it was necessary for Red to borrow $50 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 (i.e., 10,000,000 should be entered as 10). Cash outflows should be indicated with a minus