RED, INC. Comparative Balance Sheets December 31, 2021 and 2020 ($ in millions) 2021 2020 Assets Cash $ 31 $ 150 Accounts receivable 255 239 Prepaid insurance 6 2. Inventory 215 100 Buildings and 492 357 equipment Less: Accumulated (126) (247) depreciation $ 873 $ 601 Liabilities Accounts payable $ 85 $ 114 Accrued liabilities 5 9 Notes payable 32 0 Bonds payable 148 0 Shareholders' Equity Common stock 407 407 Retained earnings 196 71 $ 873 $ 601 RED, INC. Statement of Income For Year Ended December 31, 2021 ($ in millions) Revenues Sales revenue $2,200 Expenses Cost of goods $1,500 sold Depreciation 23 expense Operating 520 2,043 expenses Net income $ 157 Additional information from the accounting records: a. During 2021, $315 million of equipment was purchased to replace $180 million of equipment (80% depreciated) sold at book value. b. In order to maintain the usual policy of paying cash dividends of $32 million, it was necessary for Red to borrow $32 million from its bank. Required: Prepare the statement of cash flows for Red, Inc., using the indirect method to report operating activities. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) RED, INC. Statement of Cash Flows For year ended December 31, 2021 ($ in millions) Cash flows from operating activities: Net income Adjustments for noncash effects: Changes in operating assets and liabilities: Decrease in accounts payable $ 0 Net cash flows from operating activities Cash flows from investing activities: Purchase of equipment Sale of equipment (315) 36 Net cash flows from investing activities (279) Canh flaun fram finansine astiritina