28 Selected financial information for Frank Corporation is presented below. Selected 2020 transactions are as follows: a. Purchased investment securities for $6,400 cash. b. Borrowed $17,800 on a two-year, 8 percent interest-bearing note. c. During 2020, sold machinery for its carrying amount; received $13,100 in cash. d. Purchased machinery for $52,800: paid $10,400 in cash and signed a four-year note payable to the dealer for $42,400. e. Declared and paid a cash dividend of $11,400 on December 31, 2020. Selected account balances at December 31, 2019 and 2020 are as follows: Cash Accounts receivable Inventory Accounts payable Accrued wages payable Income taxes payable December 31 2020 2019 $85,800 $22,400 18,400 12,700 53,400 62,800 8,400 12,800 1,500 2,400 6,400 3,700 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 $428,000 Cost of sales 282,000 Gross profit 146,000 Expenses Salaries and wages $52,400 Depreciation 10,600 Rent (no accruals) 7,200