Comparative balance sheets for $2024$ and $2023,$ a statement of income for $2024,$ and additional information from the accounting

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

RED, INCORPORATED

Comparative Balance Sheets

December $31,2024$ and $2023($$ in millions$)$

$20242023$

Assets

Cash $ $42$ $ $138$

Accounts receivable $194150$

Prepaid insurance $148$

Inventory $300193$

Buildings and equipment $436368$

Less: Accumulated depreciation $(137)(258)$

$ $849$ $ $599$

Liabilities

Accounts payable $ $105$ $ $136$

Accrued liabilities $1321$

Notes payable $680$

Bonds payable $1440$

Shareholders$$ Equity

Common stock $418418$

Retained earnings $10124$

$ $849$ $ $599$

RED, INCORPORATED

Statement of Income

For Year Ended December $31,2024$

$($$ in millions$)$

Revenues

Sales revenue $ $2,180$

Expenses

Cost of goods sold $ $1,468$

Depreciation expense $41$

Operating expenses $5262,035$

Net income $ $145$

Additional information from the accounting records:

During $2024,$ $$248$ million of equipment was purchased to replace $$180$ million of equipment $(90\%$ depreciated$)$ sold at book value.

In order to maintain the usual policy of paying cash dividends of $$68$ million, it was necessary for Red to borrow $$68$ million from its bank.

Required:

Prepare the statement of cash flows for Red, Incorporated, using the indirect method to report operating activities.

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