Selected financial information for Frank Corporation is presented below. Selected 2020 transactions are as follows: a. Purchased investment securities for $6,200 cash. b. Borrowed $17,400 on a two-year, 8 percent interest-bearing note. c. During 2020, sold machinery for its carrying amount; received $12,800 in cash. d. Purchased machinery for $52,400; paid $10,200 in cash and signed a four-year note payable to the dealer for $42,200. e Declared and paid a cash dividend of $11,200 on December 31, 2020. Selected account balances at December 31, 2019 and 2020 are as follows: Cash Accounts receivable Inventory Accounts payable Accrued wages payable Income taxes payable December 31 2020 2019 $84,400 $22,200 18,200 12,600 53,200 62,400 8,200 12,400 1,400 2,200 6,200 3,600 One-fourth of the sales and one-third of the purchases were made on credit. $424,000 280,000 144,000 FRANK CORPORATION Statement of Earnings For the Year Ended December 31, 2020 Sales revenue Cost of sales Gross profit Expenses Salaries and wages $52,200 Depreciation 10,400 Rent (no accruals) 7,000 Interest (no accruals) 13,400 Income tax 13,000 Total expenses Net earnings 96,000 $ 48,000 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 numbers and not in percentages. Round the final answers to 2 decimal places.) Quality of earnings ratio Capital expenditures ratio