Comparative balance sheets for 2016 and 2015, a statement of income for 2016, and additional information from the accounting records of Red, Inc., are provided below.

RED, INC. Comparative Balance Sheets December 31, 2016 and 2015 ($ in millions)
	2016			2015
Assets
Cash	$	31		$	150
Accounts receivable		255			239
Prepaid insurance		6			2
Inventory		215			100
Buildings and equipment		492			357
Less: Accumulated depreciation		(126	)		(247	)
	$	873		$	601
Liabilities
Accounts payable	$	85		$	114
Accrued expenses payable		5			9
Notes payable		57			0
Bonds payable		148			0
Shareholders Equity
Common stock		407			407
Retained earnings		171			71
	$	873		$	601

RED, INC. Statement of Income For Year Ended December 31, 2016 ($ in millions)
Revenues
Sales revenue				$	2,200
Expenses
Cost of goods sold	$	1,500
Depreciation expense		23
Operating expenses		520			2,043
Net income				$	157

Additional information from the accounting records:

a.	During 2016, $315 million of equipment was purchased to replace $180 million of equipment (80% depreciated) sold at book value.

b.	In order to maintain the usual policy of paying cash dividends of $57 million, it was necessary for Red to borrow $57 million from its bank.

Required:

Prepare the statement of cash flows of Red, Inc. using the direct method to report operating activities. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.)