Prepare the statement of cash flows of Red Inc

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Question - 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.

Additional information from the accounting records:

1. During 2018, $231 million of equipment was purchased to replace $180 million of equipment (90% depreciated) sold at book value.

2. 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 indirect method to report operating activities.

Reference no: EM132624505

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