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 $ 25 $ 112 accounts receivable 180 133 prepaid insurance 8 4 inventory 287 176 buildings and equipment 402 351 less: accumulated depreciation (120 ) (241 ) $ 782 $ 535 liabilities accounts payable $ 88 $ 102 accrued expenses payable 7 13 notes payable 51 0 bonds payable 161 0 shareholders’ equity common stock 401 401 retained earnings 74 19 $ 782 $ 535 red, inc. statement of income for year ended december 31, 2018 ($ in millions) revenues sales revenue $ 2,010 expenses cost of goods sold $ 1,414 depreciation expense 41 operating expenses 449 1,904 net income $ 106 additional information from the accounting records: during 2018, $231 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 $51 million, it was necessary for red to borrow $51 million from its bank. required: prepare the statement of cash flows of red, inc., using the direct method to report operating activities.