21 02:50:26 Selected financial Information for Frank Corporation is presented below. Selected 2020 transactions are as follows: a. Purchased Investment secufities for $5,700 cash. b. Borrowed $16,400 on a two-year, 8 percent interest-bearing note. c. During 2020, sold machinery for its carrying amount: received $12.050 in cash. d. Purchased machinery for $51,400, paid $9,700 in cash and signed a four-year note payable to the dealer for $41,700. e. Declared and paid a cash dividend of $10,700 on December 31, 2020. Selected account balances at December 31, 2019 and 2020 are as follows: Cash Accounts receivable Inventory 2020 December 31 2019 $80,900 $21,700 17,700 12,350 52,700 61,400 03 Accounts payable Accrued wages payable Income taxes payable 7,700 11,400 1,150 1,700 5,700 3,350 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 $414,000 Cost of sales 275,000 Gross profit 139,000 Expenses Salaries and wages $51,700 Depreciation 9,900 Rent (no accruals) 6,500 Interest (no accruals) 12,900 Income tax 12,500 Total expenses 93,500 Net earnings $ 45,500