direct Comparative balance sheets for 2021 and 2020, a statement of income for 2021, and ad the accounting records of Red, Inc., are provided below. RED, INC. Comparative Balance Sheets December 31, 2021 and 2020 ($ in millions) 2021 2020 Assets Cash $ 24 $ 110 Accounts receivable 178 132 Prepaid insurance 7 3 Inventory 285 175 Buildings and equipment 400 350 Less: Accumulated depreciation (119) (240) $ 775 $ 530 Liabilities Accounts payable $ 87 $100 Accrued liabilities Notes payable 50 Bonds payable 160 Shareholders' Equity Common stock 400 400 Retained earnings 72 19 $ 775 $ 530 11 0 RED, INC. Statement of Income For Year Ended December 31, 2021 ($ in millions) Revenues Sales revenue Expenses Cost of goods sold $1,400 Depreciation expense 50 Operating expenses 447 Net income $2,000 1,897 $ 103 al information from the accounting room CHAPTER 21 The Statement of Cash Flows Revisited 1279 of cash rect Refer to the data provided in E 21-27 for Red, Inc. Required: Prepare the statement of cash flows for Red, Inc., using the indirect method to report operating activities