Pls read the instructions carefully and answer all questions. full pics not half fir answers

Use the following financial statements and additional information to (1) prepare a statement of cash flows for the year ended December 31, Year 2 using the indirect method, and (2) compute the company's cash flow on total assets ratio for Year 2. Derby Company Balance Sheets At December 31 Year 21 Year 1 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Equipment Accumulated depreciation Equipment Total assets S 85,600 72,850 157.750 6,080 280,600 (80.600) S522.280 $ 65,200 56.750 144,850 12,680 245,600 (97.600) $427.480 Liabilities: Accounts payable Income taxes payable Notes payable (long term) Total liabilities Equity S 52,850 15,2401 59.200 $127,290 $ 45,450 12,240 79.200 $136.890 Common stock 200.000 150.000 Liabilities: Accounts payable Income taxes payable Notes payable (long term) Total liabilities Equity $ 52,850 15.240 59.200 $127,290 $ 45,450 12,240 79.200 $136,890 Common stock Paid-in-capital in excess of par Retained earnings Total equity Total liabilities and equity 200,000 53,000 141.990 $394.990) $522.280 150,000 40,000 100.590 $290.590 $427.480 $488,000 Derby Company Income Statement For Year Ended December 31, Year 2 Sales Cost of goods sold $212,5401 Depreciation expense 43,000 Other operating expenses 106,260 Interest expense 6.400 Other gains (losses): Gain on sale of equipment Income before taxes Income taxes expense Net income (368,200) 4.700 124,500 41.100 $ 83.400 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