ework Saved Comparative balance sheets for 2021 and 2020, a statement of income for 2021 and additional information from the accounting records of Red, Inc, are provided below. RED, INC Comparative Balance sheets December 31, 2021 and 2020 ($ in millions) 2021 2020 Assets cash $ 26 $ 114 Accounts receivable 283 134 Prepaid insurance 11 6 Inventory 289 177 Buildings and equipment 384 352 Less: Accumulated depreciation (121) (243) $ 792 $ 541 Liabilities Accounts payable $ 90 $ 104 Accrued liabilities 10 15 Notes payable 43 0 Bonds payable 161 0 Shareholders' Equity Common stock 402 402 Retained earnings 36 20 $ 792 $ 541 RED, INC Statement of Income For Year Ended December 31, 2021 (5 in millions) Revenues Sales reven $2,010 Expenses Cost of goods sold 51,439 Depreciation expense 41 Operating expenses 421 1,901 Net Income $ 109 D 13 Additional Information from the accounting records: a. During 2021 $212 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 $43 million, it was necessary for Red to borrow $43 million from its bank Required: Prepare the statement of cash flows for Red, Inc., using the indirect method to report operating activities. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions (1.0, 10,000,000 should be entered as 10).) RED, INC Statement of Cash Flows For year ended December 31, 2021 is in millions) Cash flows from operating activities Net income Adjustments for noncash effects Changes in operating assets and Babies Net cash flows from operating activities Cash flows from investing activities $ 0