2. This part of the question is not part of your Connect assignment 3. Compute the quality of earnings ratio and the capital expenditures ratio (Enter your answers in numbers and not in percentages. Round the final answers to 2 decimal places.) Quality of earnings rato Capital expenditures ratio be indicated by a minus sign.) $ 52,000 FRANK CORPORATION Statement of Cash Flows For the Year Ended December 31, 2020 Cash flows from operating activities: Net earnings Add (deduct) items not affecting cash: Depreciation expense Increase in accounts receivable Decrease in inventory Decrease in accounts payable Decrease in wages payable Decrease in income tax payable 11,200 (6,000) 10,000 (5,000) (1,200) 3,000 64,000 Net cash flow from operating activities Cash flows from investing activities: Purchase of investments Sale of machinery Purchase of machinery (7,000) 14,000 (11,000) (4,000) Net cash flow from investing activities Cash flows from financing activities: Increase in wages payable Payment of cash dividend 19,000 (12,000) Net cash inflow from financing activities 7,000 67,000 23,000 90,000 $ Cash, beginning of 2020 Cash, end of 2020 saved Selected financial information for Frank Corporation is presented below. Selected 2020 transactions are as follows: a. Purchased investment securities for $7,000 cash. b. Borrowed $19,000 on a two-year, 8 percent interest-bearing note. c. During 2020, sold machinery for its carrying amount; received $14,000 in cash. d. Purchased machinery for $54,000; paid $11,000 in cash and signed a four-year note payable to the dealer for $43,000, e. Declared and paid a cash dividend of $12,000 on December 31, 2020, Selected account balances at December 31, 2019 and 2020 are as follows: December 31 2020 2019 Cash $90,000 $23,000 Accounts receivable 19,000 13,000 Inventory 54,000 64,000 Accounts payable 9,000 14,000 Accrued wages payable 1,800 3,000 Income taxes payable 7,000 4,000 One-fourth of the sales and one-third of the purchases were made on credit FRANK CORPORATION Statement of Earnings For the Year Ended December 31, 2020 Sales revenue $440,000 Cost of sales 288,000 Gross profit 152,000 Expenses Salaries and wages $53,000 Depreciation 11,200 Rent (no accruals) 7,800 Interest (no accruals) 14,200 Income tax 13,800 Total expenses 100,000 Net earnings $ 52,00 Reauired: HH Neyt