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 31 2012 2011 Change Assets: Cash Accounts receivable, net Merchandise inventory Prepaid expenses Equipment Accumulated depreciation-Equipment S 85,600 S 65,200 20,400 56,750 16,100 157,750144,85012,900 12,680 (6,600) 280,600 245,600 35,000 180,600) (97,600) 17,000 $522.280 $427.48024,800 72,850 6,080 Total assets Liabilities: Accounts payable Income taxes payable Notes payable (long term) s 52,850 45,450 7,400 3,000 15,240 59,20079.200 (20,000) 12,240 Total liabilities $127,290 $136,890 Equity: Common stock Paid-in capital in excess of par Retained earnings 50,000 13,000 200,000 53,000 141.990100.59041,400 40,000 Total equity Total liabilities and equity $394990 $290.590 $522.280 $427.480 94,800