omparative balance sheets for 2018 and 2017, a statement of income for 2018, and additional information from the accounting ecords of Red, Inc., are provided below RED, INC. Comparative Balance Sheets December 31, 2018 and 2017 ( in millions) 2018 201 Assets Cash Accounts receivable Prepaid insurance Inventorv Buildings and equipment Less: Accumulated depreciation $ 25 112 133 180 287 402 176 351 (120 (241) $ 782 535 Liabilities Accounts payable Accr Notes payable Bonds payable Shareholders' Equity Common stock Retained earnings $ 88 102 13 ued expenses payable 51 161 401 74 401 19 $ 782 535 RED, INC Statement of Income For Year Ended December 31, 2018 (s in millions) Revenues Sales revenue Expenses Cost of goods sold Depreciation expense Operating expenses Net income $2,010 $1,414 449 1,904 $ 106 Additional information from the accounting records a. During 2018, $231 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 $51 million, it was necessary for Red to borrow $51 million from its bank. Required: Prepare the statement of cash flows of Red, Inc., using the direct method to report operating activities. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.) RED, INC. Statement of Cash Flows For year ended December 31, 2018 ($ in millions) Cash flows from operating activities Cash inflows Cash outflows Net cash flows from operating activities Cash flows from investing activities Net cash flows from investing activities Cash flows from financing activities Net cash flows from financing activities Net increase (decrease) in cash Cash balance, January1 Cash balance, December 31