Selected financial information for Frank Corporation is presented below. Selected 2020 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 2020, 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, 2020. Selected account balances at December 31, 2019 and 2020 are as follows: December 31 2020 2019 Cash Accounts receivable Inventory Accounts payable Accrued wages payable Income taxes payable $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, 2020 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