P5-2 Preparing the Statement of Cash Flows (Indirect Method) LO5-1, 5-2,5-3,5-5, 5-7 Ants Selected financial Information for Frank Corporation is presented below. Selected 2020 transactions are as follows: a. Purchased investment securities 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 $51400; paid $9700 in cash and signed a four-year note payable to the dealer for $41700 e Declared and paid a cash dividend of $10,700 on December 31, 2020. eBook Prind Selected account balances at December 31, 2019 and 2020 are as follows: prenonces Cash Accounts receivable Inventory Accounts payable Accrued wages payable Income taxes payable December 31 2020 2019 $89,900 $21,700 17,700 12,350 52,700 62,400 7.700 11,400 1,250 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, eee 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 12,5ee Total expenses 93,500 Net earnings $ 45,500 Required: 1 Prepare a statement of cash flows for the year ended December 31, 2020 by using the indirect method. (Negative answers should be indicated by a minus sign.) 10 point eode 45,500 FRANK CORPORATION Statement of Cash Flows For the Year Ended December 31, 2020 Cash flows from operating activities Net earnings $ Add(doductions not affecting cash Depreciation expense Increase in accounts receivable Decrease in inventory Decrease in accounts payable Decrease in wages payable Increase in income tax payablo 9,900 fo tences Net cash flow from operating activities Cashflows from investing activities $ 65.400 Net cash flow from investing activities Cash flows from financing activities 0 Net cash inflow from financing activities 0 55.400 Cash, beginning of 2020 Cash end of 2020 S 55.400 pa 3. Compute the quality of earningsmate and the capital pertamar your answer and percentages und te decimales