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 2	Year 1
Assets:
Cash	$ 85,600	$ 65,200
Accounts receivable, net	72,850	56,750
Merchandise inventory	157,750	144,850
Prepaid expenses	6,080	12,680
Equipment	280,600	245,600
Accumulated depreciation-Equipment	(80,600)	(97,600)
Total assets	$522,280	$427,480
Liabilities:
Accounts payable	$ 52,850	$ 45,450
Income taxes payable	15,240	12,240
Notes payable (long term)	59,200	79,200
Total liabilities	$127,290	$136,890
Equity:
Common stock	200,000	150,000
Paid-in capital in excess of par	53,000	40,000
Retained earnings	141,990	100,590
Total equity	$394,990	$290,590
Total liabilities and equity	$522,280	$427,480