tollowing financial statements and additional information to prepare the entire statement t cash flows for the year ended December 31, 2012 using the direct method. Derby Company Balance Sheets December 31 2012 2011 Change Assets: $ 85,600 65,200 20,400 16,100 Cash Accounts receivable, net Merchandise inventory Prepaid expenses Equipment Accumulated depreciation-Equipment 72,850 157,750 6,080 280,600 56,750 144,850 12,900 (6,600) 245,600 35,000 (80.600) (97.600) 17.000 $522,280 $427.48Q 94,800 12,680 Total assets Liabilities: Accounts payable Income taxes payable Notes payable (long term) 15,240 59,200 00(20,000) 52,850 45,450 12,240 7,400 3,000 Total liabilities $127,290 $136,890 Equity: Common stock Paid-in capital in excess of par Retained earnings 150,000 141.990 100,590 41,400 $522,280 $427 480 94,800 200,000 53,000 50,000 13,000 40,000 Total equity Total liabilities and equity $394.990 $290,590