Use the following financial statements and additional information to (1) prepare a complete statement of cash flows for the year ended December 31, 2011. 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 2011. 
Additional Information
a. A $20,000 note payable is retired at its carrying value in exchange for cash.
b. The only changes affecting retained earnings are net income and cash dividends paid.
c. New equipment is acquired for $120,000 cash.
d. Received cash for the sale of equipment that had cost $85,000, yielding a gain of $4,700.
e. Prepaid expenses relate to Other Expenses on the income statement.
f. All purchases and sales of merchandise inventory are on credit.
Definitions:
Income From Operations
Income from operations is the profit realized from a business's core operations, excluding any earnings from investments, taxes, or special items.
Invested Assets
Resources or funds committed to ventures with the expectation of earning a return, typically includes financial investments like stocks and bonds.
Investment Turnover
The ratio of net sales to average investment, measuring how effectively investments are used to generate sales.
Income From Operations
The income earned from the core business operations of a company, excluding non-operational income and expenses.
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