Use the following financial statements of Westcott Company and additional information (1) prepare a complete statement of cash flows for the year ended December 31, 2019. 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 2019 (Formula: Cash flow from operating activities/average total assets).

	Westcott Company Balance Sheets December 31,
	2019	2018
Cash	85,600	65,200
Accounts receivable	72,850	56,750
Inventory	157,750	144,850
Prepaid expenses	6,080	12,680
Equipment	280,600	245,600
Accumulated depreciation	(80,600)	(97,600)
Total assets	522,280	427,480
Accounts payable	52,850	45,450
Income Taxes payable	15,240	12,240
Bonds payable	59,200	79,200
Common stock	200,000	150,000
Contributed capital in excess of par	53,000	40,000
Retained earnings	141,990	100,590
Total Liabilities and Equity	522,280	427,480

Additional Information:

1. Net income for the year was $83,400

2. Dividends paid amounted to $42,000

3. Consider the decrease in accumulated depreciation to be an increase in cash flow. (Please note that the balance resulted from the beginning balance + purchase of additional equipment less sale of equipment = 245,600 + 120,000 cost of sold equipment 85,000 = 280,600).