Selected financial information for Frank Corporation is presented below. Selected 2017 transactions are as follows: a. Purchased investment securities for $6,900 cash. b. Borrowed $18,800 on a two-year, 8 percent interest-bearing note. c. During 2017, sold machinery for its carrying amount; received $13,850 in cash. d. Purchased machinery for $53,800; paid $10,900 in cash and signed a four-year note payable to the dealer for $42,900. e. Declared and paid a cash dividend of $11,900 on December 31, 2017. Selected account balances at December 31, 2016 and 2017 are as follows: December 31 2017 2016 Cash $89,300 $22,900 Accounts receivable 18,900 12,950 Inventory 53,900 63,800 Accounts payable Accrued wages payable Income taxes payable 8,900 13,800 1,750 2,900 6,900 3,950 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 $438,000 Cost of sales 287,000 Gross profit 151,000 Expenses Salaries and wages $52,900 Depreciation 11,100 Rent (no accruals) 7,700 Interest (no accruals) 14,100 Income tax 13,700 Total expenses 99,500 Net earnings $ 51,500 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.) FRANK CORPORATION Statement of Cash Flows For the Year Ended December 31, 2017 Cash flows from operating activities: Add (deduct) items not affecting cash: Net cash flow from operating activities $ 0 Cash flows from investing activities: Net cash flow from investing activities Cash flows from financing activities: 0 Net cash inflow from financing activities 0 0 Cash, beginning of 2017 Cash, end of 2017 0 2. 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 ratio Capital expenditures ratio