Selected financial information for Frank Corporation is presented below. Selected 2017 transactions are as follows: a. Purchased investment securities for $6,800 cash. b. Borrowed $18,600 on a two-year, 8 percent interest-bearing note. c. During 2017, sold machinery for its carrying amount; received $13,700 in cash. d. Purchased machinery for $53,600; paid $10,800 in cash and signed a four-year note payable to the dealer for $42,800. e. Declared and paid a cash dividend of $11,800 on December 31, 2017. Selected account balances at December 31, 2016 and 2017 are as follows: December 31 2017 2016 Cash $88,600 $22,800 Accounts receivable 18,800 12,900 Inventory 53,800 63,600 Accounts payable 8,800 13,600 Accrued wages payable 1,700 2,800 Income taxes payable 6,800 3,900 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 $436,000 Cost of sales 286,000 Gross profit 150,000 Expenses Salaries and wages $52,800 Depreciation 11,000 Rent (no accruals) 7,600 Interest (no accruals) 14,000 Income tax 13,600 Total expenses 99,000 Net earnings $ 51,000 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 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 2017 Cash, end of 2017 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