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	$ 39	$ 95
Accounts receivable	228	147
Prepaid insurance	10	5
Inventory	240	201
Buildings and equipment	430	375
Less: Accumulated depreciation	(134)	(255)
	$ 813	$ 568
Liabilities
Accounts payable	$ 102	$ 130
Accrued liabilities	9	18
Notes payable	65	0
Bonds payable	169	0
Shareholders Equity
Common stock	415	415
Retained earnings	53	5
	$ 813	$ 568

RED, INCORPORATED
Statement of Income
For Year Ended December 31, 2024
($ in millions)
Revenues
Sales revenue		$ 2,150
Expenses
Cost of goods sold	$ 1,445
Depreciation expense	32
Operating expenses	560	2,037
Net income		$ 113

Additional information from the accounting records:

During 2024, $235 million of equipment was purchased to replace $180 million of equipment (85% depreciated) sold at book value.

In order to maintain the usual policy of paying cash dividends of $65 million, it was necessary for Red to borrow $65 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.