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, INCORPORATEDComparative Balance SheetsDecember $31,2024$ and $2023($$ in millions$)20242023$Assets$$Cash$ $35$$ $134$Accounts receivable$200143$Prepaid insurance$53$Inventory$307186$Buildings and equipment$422361$Less: Accumulated depreciation$(130)(251)$$ $839$$ $576$Liabilities$$Accounts payable$ $98$$ $122$Accrued liabilities$49$Notes payable$810$Bonds payable$1730$Shareholders$$ Equity$$Common stock$411411$Retained earnings$7234$$ $839$$ $576$

RED, INCORPORATEDStatement of IncomeFor Year Ended December $31,2024($$ in millions$)$Revenues$$Sales revenue$$$ $2,110$Expenses$$Cost of goods sold$ $1,424$Depreciation expense$41$Operating expenses$5261,991$Net income$$$ $119$

Additional information from the accounting records:

During $2024,$ $$241$ million of equipment was purchased to replace $$180$ million of equipment $(90\%$ depreciated$)$ sold at book value.

In order to maintain the usual policy of paying cash dividends of $$81$ million, it was necessary for Red to borrow $$81$ million from its bank.

Required:

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

Additional information from the accounting records:

a$.$ During $2024,\backslash (\backslash$$ $241\backslash )$ million of equipment was purchased to replace $\backslash (\backslash$$ $180\backslash )$ million of equipment $(\backslash (90\backslash \%\backslash )$ depreciated$)$ sold at book value.

b$.$ In order to maintain the usual policy of paying cash dividends of $\backslash (\backslash$$ $81\backslash )$ million, it was necessary for Red to borrow $\backslash (\backslash$$ $81\backslash )$ 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 $10).$ RED, INCORPORATED

Statement of Cash Flows

For year ended December $31,2024(\backslash$$ in millions$)$