Do not give answer in image Additional Informationa. A $30,000 note payable is retired at its $30,000 carrying (book) value in exchange for cash.b. The only changes affecting retained earnings are net income and cash dividends paid.c. New machinery is acquired for $65,600 cash.d. Received cash for the sale of machinery that had cost $56,600, yielding a $2,800 gain.e. Prepaid Expenses and Salaries Payable relate to Operating Expenses on the income statement.f. All purchases and sales of inventory are on credit.(2) Compute the company's cash flow on total assets ratio for Year 2.Choose Numerator:Cash flow from operations$Cash Flow on Total Assets Ratio1 Choose Denominator:Average total assets1173,110 1===Cash Flow on Total Assets RatioCash flow on total assets ratio0 AssetsCashComparative Balance SheetsAt December 31Accounts receivable, netInventoryPrepaid expensesTotal current assetsMachineryAccumulated depreciation-MachineryTotal assetsLiabilitiesAccounts payableSalaries payableIncome taxes payableTotal current liabilitiesNotes payable (long term)Total liabilitiesEquityCommon stock, no par valueRetained earningsTotal liabilities and equitySalesCost of goods soldGross profitOperating expenses (excluding depreciation)Depreciation expenseYear 2$ 102,70077,00071,8005,200Other gains (losses)Gain on sale of machineryIncome before taxesIncome taxes expenseNet income256,700132,000(31,000)$ 357,700Income StatementFor Year Ended December 31, Year 2$ 33,0006,8004,20044,00038,00082,000236,00039,700$ 357,700Year 1$ 52,00059,00098,5007,000216,500123,000(13,000)$ 326,500$ 42,00016,6005,40064,00068,000132,000168,00026,500$ 326,500$718,000419,000299,00075,00066,600157,4002,800160, 20044,690$115,510

Answered: Image /qna-images/answer/2d63fc8e-3260-4e4c-a152-7e60ff2bbb08.jpg

Additional Information a. A $30,000 note payable is retired at its $30,000 carrying (book) value in exchange for cash. b. The only changes affecting retained earnings are net income and cash dividends paid. c. New machinery is acquired for $65,600 cash. d. Received cash for the sale of machinery that had cost $56,600, yielding a $2,800 gain. e. Prepaid Expenses and Salaries Payable relate to Operating Expenses on the income statement. f. All purchases and sales of inventory are on credit. (2) Compute the company's cash flow on total assets ratio for Year 2. Choose Numerator. Cash flow from operations S 173,110 Cash Flow on Total Assets Ratio 1 Choose Denominator: Average total assets 1 I = = Cash Flow on Total Assets Ratio Cash flow on total assets ratio 0