Required information [The following information opplies to the questions displayed below] The following financial statements and additional information are reported. Additional Information a. A $30,000 note payable is retired at its $30,000 carrying (book) value in exchange for cash b. The only changes affecting retained earnings are net income and cash dividends paid. c. New machinery is acquired for $77,600 cash. d. Recelved cash for the sale of machinery that had cost $68,600, yielding a $4,000 gain. e. Prepaid Expenses and Salaries Payable relate to Operating Expenses on the income statement. f. All purchases and sales of inventory are on credit. Required: (1) Prepare a statement of cash flows using the indirect method for the year ended December 31 , Year 2 Note: Amounts deducted should be indicated with a minus sign. 1. Required information (1) Required information (2) Compute the company's cash flow on total assets ratio for Year 2