Additional information from the accounting records:

a$.$ During $2024,\backslash (\backslash$$ $230\backslash )$ million of equipment was purchased to replace $\backslash (\backslash$$ $180\backslash )$ million of equipment $(\backslash (95\backslash \%\backslash )$ depreciated$)$ sold at book value.

b$.$ In order to maintain the usual policy of paying cash dividends of $\backslash (\backslash$$ $50\backslash )$ million, it was necessary for Red to borrow $\backslash (\backslash$$ $50\backslash )$ million from its bank.

Required:

Prepare the statement of cash flows of Red, Incorporated, for the year ended December $31,2024,$ using the direct method to report operating activities.

Note: Enter your answers in millions $($i$.$e$.,10,000,000$ should be entered as $10).$ Cash outflows should be indicated with a minus sign.

Answer is not complete.

$\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|\}$

$\backslash$hline $\backslash$multicolumn$\{3\}\{|$l$|\}\{$RED$,$ INCORPORATED$\}\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{3\}\{|$l$|\}\{$Statement of Cash Flows$\}\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{3\}\{|$l$|\}\{$For year ended December $31,2024(\backslash$$ in millions$)\}\backslash \backslash$

$\backslash$hline Cash flows from operating activities: & & $\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{3\}\{|$l$|\}\{$Cash inflows:$\}\backslash \backslash$

$\backslash$hline From customers $($V$)$ & $\backslash$$ $1,954$ & $\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{3\}\{|$l$|\}\{$Cash outflows:$\}\backslash \backslash$

$\backslash$hline To suppliers of goods $($V$)$ & $\backslash ((1,523)\backslash )$ & $\backslash \backslash$

$\backslash$hline For operating expenses $($ & $(446)\backslash (\backslash$times $\backslash )$ & $\backslash \backslash$

$\backslash$hline Net cash flows from operating activities & & $\backslash$$ $(15)\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{3\}\{|$l$|\}\{$Cash flows from investing activities:$\}\backslash \backslash$

$\backslash$hline Purchase of equipment $($V$)$ & $(230)\backslash (\{\}^\{2\}\backslash )$ & $\backslash \backslash$

$\backslash$hline Sale of equipment $($V$)$ & g $\backslash ($ V $\backslash )$ & $\backslash \backslash$

$\backslash$hline Net cash flows from investing activities & & $(221)\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{3\}\{|$l$|\}\{$Cash flows from financing activities:$\}\backslash \backslash$

$\backslash$hline Issuance of bonds payable $($V$)$ & $160)$ & $\backslash \backslash$

$\backslash$hline Issuance of note payable $($V$)$ & $50$ & $\backslash \backslash$

$\backslash$hline Payment of dividends $\backslash ((\backslash$checkmark$)\backslash )$ & $(50)$ & $\backslash \backslash$

$\backslash$hline Net cash flows from financing activities & & $160\backslash \backslash$

$\backslash$hline Net increase $($decrease$)$ in cash & & $(76)\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$ Exercise $21-27($Static$)$ Statement of cash flows; direct method $[$LO$21-3,21-5,21-6,21-8]$

Comparative balance sheets for $2024$ and $2023,$ a statement of income for $2024,$ and additional information from the points accounting records of Red, Incorporated, are provided below:

RED, INCORPORATED

Statement of Income

Revenues

Additional information from the accounting records:

a$.$ During $2024,\backslash (\backslash$$ $230\backslash )$ million of equipment was purchased to replace $\backslash (\backslash$$ $180\backslash )$ million of equipment $(\backslash (95\backslash \%\backslash )$ depreciated$)$ sold at book value.

b$.$ In order to maintain the usual policy of paying cash dividends of $\backslash (\backslash$$ $50\backslash )$ million, it was necessary for Red to borrow $\backslash (\backslash$$ $50\backslash )$ million from its bank.

Required:

Prepare the statement of cash flows of Red, Incorporated, for the year ended December $31,2024,$ using the direct method to report operating activities.

Note: Enter your answers in millions $($i$.$e$.,10,000,000$ should be entered as $10).$ Cash outflows should be indicated with a minus sign.