Only need the answers for the 2 red X's

Selected financial information for Frank Corporation is presented below. Selected 2017 transactions are as follows: a. Purchased investment securities for $6,300 cash. b. Borrowed $17,600 on a two-year, 8 percent interest-bearing note. c. During 2017, sold machinery for its carrying amount; received $12,950 in cash. d. Purchased machinery for $52,600; paid $10,300 in cash and signed a four-year note payable to the dealer for $42,300 e. Declared and paid a cash dividend of $11,300 on December 31, 2017 Selected account balances at December 31, 2016 and 2017 are as follows: December 31 Cash Accounts receivable Inventory Accounts payable Accrued wages payable Income taxes payable 2017 2016 $ 85,100 $ 22,300 18,300 12,650 53,300 62,600 8,300 12,600 1,450 2,300 6,300 3,650 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, 2017 Sales revenue $ 426,000 Cost of sales 281,000 Gross profit 145,000 Expenses Salaries and wages $ 52,300 Depreciation 10,500 Rent (no accruals) 7,100 Interest (no accruals) 13,500 Income tax 13,100 Total expenses 96,500 Net earnings $ 48,500 Required: 1. Prepare a statement of cash flows for the year ended December 31, 2017 by using the indirect method. (Negative answers should be indicated by a minus sign.) Answer is not complete. FRANK CORPORATION Statement of Cash Flows For the Year Ended December 31, 2017 Cash flows from operating activities: Net earnings $ 48,500 Add (deduct) items not affecting cash: Depreciation expense 10,500 Increase in accounts receivable (5,650) Decrease in inventory 9,300 Decrease in accounts payable Decrease in wages payable (850) Increase in income tax payable 2,650 OOOOOO 0 $ 64,450 Net cash flow from operating activities Cash flows from investing activities: Purchase of investments Sale of machinery Purchase of machinery (6,300) 12,950 (10,300) (3,650) Net cash flow from investing activities Cash flows from financing activities: Borrowing on long-term note Payment of cash dividend 17,600 (11,300) Net cash inflow from financing activities 6,300 67,100 Cash, beginning of 2017 Cash, end of 2017 $ 67,100