Comparative balance sheets for 2024 and 2023, a statement of income for 2024, and additional information from the accounting records of Red, Inc., are provided below.

Additional information from the accounting records:
a. During 2024, $230 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 $50 million from its bank.

Required:
Prepare the statement of cash flows of Red, Inc., for the year ended December 31, 2024. Present cash flows from operating activities by the direct method.

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Assets Cash Accounts receivable Prepaid insurance Inventory Buildings and equipment Less: Accumulated depreciation Liabilities Accounts payable Accrued liabilities Notes payable Bonds payable RED, INC. Comparative Balance Sheets December 31, 2024 and 2023 ($ in millions) Shareholders' Equity Common stock Retained earnings 2024 $24 178 7 285 400 (119) $ 775 $ 87 6 50 160 400 72 $ 775 2023 $ 110 132 3 175 350 (240) $ 530 $100 11 0 400 19 $ 530