E 21-22 Comparative Statement of Financial Position Accounts receivable Inventory Buildings and equipment Less: Acordated depreciation (119 $100 Accounts payable Accrued expenses payable Notes payable Bonds payable Shareholders' Equity Ordinary share capital Retained earnings 400 5775 RED LTD Income Statement For Year Ended December 31, 2013 is in millions) Revenues Sales revenue $2.000 Expenses Cost of goods sold $1,400 Depreciation expense 50 Operating expenses 1,897 Net Income $ 103 Additional information from the accounting records: a. During 2013, S230 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 S50 million from its bank. Required: Prepare the statement of cash flows of Red Lid for the year ended December 31, 2013, assuming Red classifies dividends paid as a financing activity. Present cash flows from operating activities by the direct method. (You may omit the schedule to reconcile net income to cash flows from operating activities.)