Selected financial information for Frank Corporation is presented below. Selected 2020 transactions are as follows: a. Purchased investment securities for $6,500 cash. b. Borrowed $18,000 on a two-year, 8 percent interest-bearing note. c. During 2020, sold machinery for its carrying amount; received $13,250 in cash. d. Purchased machinery for $53,000; paid $10,500 in cash and signed a four-year note payable to the dealer for $42,500. e. Declared and paid a cash dividend of $11,500 on December 31, 2020. Selected account balances at December 31, 2019 and 2020 are as follows: December 31 2020 2019 $86,500 $22,500 Cash Accounts receivable Inventory Accounts payable Accrued wages payable Income taxes payable 18,500 12,750 53,500 63,000 8,500 13,000 1,550 2,500 6,500 3,750 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 $430,000 Cost of sales 283,000 Gross profit 147,000 Expenses Salaries and wages $52,500 Depreciation 10,700 Rent (no accruals) 7,300 Interest (no accruals) 13,700 Income tax 13,300 Total expenses 97,500 Net earnings $ 49,500 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.) FRANK CORPORATION Statement of Cash Flows For the Year Ended December 31, 2020 Cash flows from operating activities: Add (deduct) items not affecting cash: Net cash flow from operating activities Cash flows from investing activities: Net cash flow from investing activities Cash flows from financing activities: Net cash inflow from financing activities Cash, beginning of 2020 Cash, end of 2020 2. This part of the question is not part of your Connect assignment. 3. Compute the quality of earnings ratio and the capital expenditures ratio. (Enter your answers in numbe Round the final answers to 2 decimal places.) Quality of earnings ratio Capital expenditures ratio