Use the following financial statements and additional information to prepare the entire statement of cash flows for the year ended December 31, 2012 using the direct method. Derby Company Balance Sheets December 2012 2011 Change Assets: Cash Accounts receivable, net Merchandise inventory Prepaid expenses Equipment Accumulated depreciation-Equipment S 85,600 65,200 20.400 56,750 16,100 157,750 144,850 12,900 12,680 (6,600) 280,600 245,600 35,000 .(80.600) 97,60 17000 $522,280 $427.480 94.800 72,850 6,080 Total assets Liabilities: Accounts payable Income taxes payable Notes payable (long term) s 52,850 45,450 7,400 12,240 3,000 15,240 59.200 79.200 (20,000) Total liabilities S127,290$136,890 Equity Common stock Paid-in capital in excess of par Retained earnings 200,000 150,000 50,000 40,000 13,000 141,990 100.590 41,400 53,000 990 $290.590 Total equity Total liabilities and equity $522,280 $427.480 94,800