Comparative balance sheets for 208 and 2017, a statement of income for 2018, and additional information from the accounting records of Red, Inc., are provided below

addition information

1. During 2018, $250 million of equipment was purchased to replace $180 millio of equipment (95% depreciated) sold at book value.
2. In order to maintain the usual policy of paying cash dividends of $70 million, it was necessary for Red to borrow $70 million from it bank

Comparative balance sheets for 2018 and 2017, a statement of income for 2018, and additional information from the accounting records of Red, Inc., are provided below. RED, INC. Comparative Balance Sheets December 31, 2018 and 2017 ($ in millions) 2018 2017 Assets Cash $ 44 $ 152 Accounts receivable 198 152 Prepaid insurance 12 5 Inventory 325 195 Buildings and equipment 440 370 Less: Accumulated depreciation (139) (260) $ 880 $ 614 Liabilities Accounts payable $ 107 $ 140 Accrued expenses payable 11 16 Notes payable 70 Bonds payable 181 Shareholders' Equity Common stock 420 Retained earnings 0 RED, INC. Statement of Income For Year Ended December 31, 2018 ($ in millions) Revenues Sales revenue $2,200 Expenses Cost of goods sold $1,482 Depreciation expense 50 Operating expenses 545 2,077 Net income $ 123 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.) RED, INC. Statement of Cash Flows For year ended December 31, 2018 ($ in millions) Cash flows from operating activities: Cash inflows: Cash outflows: To suppliers of goods Net cash flows from operating activities Cash flows from investing activities: Net cash flows from investing activities Cash flows from financing activities: Net cash flows from financing activities Net increase (decrease) in cash Cash balance, January 1 Cash balance, December 31