Use the following financial statements and additional information to $(1)$ prepare a complete statement of cash flows for the year ended December $31,$ Year $2.$ The cash provided or used by operating activities should be reported using the direct method, and $(2)$ compute the company's cash flow on total assets ratio for Year $2.$

$\backslash$table$[[\backslash$table$[[$Derby Company$],[$Balance Sheets$],[$At December $31]]],[$Assets:$,$Year $2,$Year $1],[$Cash$,,],[$Accounts receivable, net,$85,600,65,200],[$Merchandise inventory,$72,850,56,750],[$Prepaid expenses,$157,750,144,850],[$Equipment$,6,080,12,680],[$Accumulated depreciation$-$Equipment,$280,600,245,600],[$Total assets,$(80,600),(97,600)$