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	$	32		$	153
Accounts receivable		175			141
Prepaid insurance		9			5
Inventory		300			184
Buildings and equipment		418			359
Less: Accumulated depreciation		(128	)		(249	)
	$	806		$	593
Liabilities
Accounts payable	$	96		$	118
Accrued expenses payable		8			12
Notes payable		59			0
Bonds payable		175			0
Shareholders Equity
Common stock		409			409
Retained earnings		59			54
	$	806		$	593

RED, INC. Statement of Income For Year Ended December 31, 2016 ($ in millions)
Revenues
Sales revenue				$	2,090
Expenses
Cost of goods sold	$	1,361
Depreciation expense		69
Operating expenses		596			2,026
Net income				$	64

Additional information from the accounting records:

a.	During 2016, $259 million of equipment was purchased to replace $200 million of equipment (95% depreciated) sold at book value.

b.	In order to maintain the usual policy of paying cash dividends of $59 million, it was necessary for Red to borrow $59 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.)