8. Use the following financial statements and additional information to a. Prepare a statement of cash flows for the year ended December 31, 2012 using the indirect Derby Company Income Statement For Year Ended December 31, 2012 method b. Prepare only the cash flows from operating activities section of the statement of cash flows using the direct method $488,000 c. Compute the company's cash flow on total assets ratio for 2012 ost of goods sold S212 ation cxpense ther operating expenses nterest ther gains (losses 106 Derby Company Balance Sheets At December 31 nse 368,200 Gain on sale of equi Income before taxes 124,500 ncome taxes se Cash Accounts receivable, net Merchandise invento 85 et i 56.7 157,750. 144.8 Additional Information a. A $20,000 note payable is retired at its carrying value in exchange for cash. b. The only changes affecting retained earnings are net income and cash dividends paid. c. New equipment is acquired for $120,000 cash. d. Received cash for the sale of equipment that had cost $85,000, yielding a gain of $4,700 e. Prepaid expenses relate to Other Expenses on the income statement f. All purchases and sales of merchandise inventory are on credit. 12,68 245 97,600 aid expenseS 6,08 280 80,600 nt Accumulated de otal assets ation abilities Accounts payable Income taxes payable 45,4 15 Notes payable (long term otal liabilities 127 36,890 150 40,000 90,590 Common stock Paid-in capital in excess o Retained earnin 200 otal equi otal liabilities and 394.9