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:

$\backslash$table$[[\backslash$table$[[$RED$,$ INCORPORATED$],[$Comparative Balance Sheets December $31,2024$ and $2023($$ in millions$)20242023]]],[$Assets$,,],[$Cash$,$$ $36,$$ $142],[$Accounts receivable,$209,144],[$Prepaid insurance,$12,8],[$Inventory$,260,187],[$Buildings and equipment,$424,362],[$Less: Accumulated depreciation,$(131),(252)],[,$$ $810,$$ $591],[$Liabilities$,,],[$Accounts payable,$ $99,$$ $124],[$Accrued liabilities,$11,14],[$Notes payable,$62,0],[$Bonds payable,$147,0],[$Shareholders$\text{'}$ Equity,,$],[$Common stock,$412,412],[$Retained earnings,$79,41],[,$$ $810,$$ $591]]$

RED, INCORPORATED

Statement of Income

For Year Ended December $31,2024$

$($$ in millions$)$

Additional information from the accounting records:

a$.$ During $2024,$$$272$ million of equipment was purchased to replace $$210$ million of equipment $(80\%$ depreciated$)$ sold at book value.

b$.$ In order to maintain the usual policy of paying cash dividends of $$62$ million, it was necessary for Red to borrow $$62$ 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 $10).$

$\backslash$table$[[$RED$,$ INCORPORATED,$],[$Statement of Cash Flows$],[$For year ended December $31,2024($$ in millions$),,],[$Cash flows from operating activities:,,$],[,,],[$Adjustments for noncash effects:,,$],[,,]]$