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.

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