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21HW Help Save &Exit Submi Check my work 40 Statement of Income Year Ended December 31, 2818 Sales revenue Expen Cost of goods sold Depreciation expense Operating expenses Net income $2,010 points $1,439 41 421 1,981 s 109 eBook Print Additional information from the accounting records a. During 2018, $212 million of equipment was purchased to replace S180 million of equipment 90% depreciate sold at bo kvalue 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 of 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 (i.., 10,000,000 should be entered as 10 RED, INC Statement of Cash Flows For year ended December 31, 2018 (S in millions) Cash flows from operating activites Mc Graw Hill Pre 40 of 40 Next Cash flows from operating activities: et income 3 2,200 Adjustments for noncash effects expense Changes in operating assets and liabilities: Increase in accounts receivable Increase in prepaid insurance Increase in inventory Decrease in accounts payable Decrease in accrued expenses payable Net cash flows from operating activities Cash flows from investing activities 2,200 Purchase of equipment Sale of equipment Net cash flows from investing activities Cash fows from financing activities ssuance of note payable Issuance of bonds payable Payment of cash dividends Net cash flows from financing activites Net increase (decrease) in casn 2.200 Cash balance, January 1 Cash balance. December 31 2 200