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Additional information from the accounting records: During 2021, $241 million of equipment was purchased...

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Accounting

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Additional information from the accounting records:

During 2021, $241 million of equipment was purchased to replace $180 million of equipment (90% depreciated) sold at book value.

In order to maintain the usual policy of paying cash dividends of $81 million, it was necessary for Red to borrow $81 million from its bank.

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

\begin{tabular}{|} \hline 7 \\ \hline points \\ \hline eBook \\ \hline Print \\ \hline References \\ \hline \end{tabular} 1 RED, INC. Comparative Balance Sheets December 31,2021 and 2020 ( $ in millions) 20212020 7 points eBook Print References Assets Cash Accounts receivable Prepaid insurance Inventory Buildings and equipment Less: Accumulated depreciation Liabilities Accounts payable Accrued liabilities Notes payable Bonds payable Shareholders' Equity Common stock Retained earnings RED, INC. Statement of Income For Year Ended December 31, 2021 ( $ in millions) Revenues Sales revenue $2,110 Expenses Cost of goods sold $1,424 Depreciation expense 41

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