Selected financial information for Frank Corporation is presented below. Selected 2020 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 2020, 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, 2020, a 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 $88,600 $22,800 18,800 12,900 53,800 63,600 8,800 13,600 1,700 2,800 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, 2020 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, 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: $ 0 Net cash flow from operating activities Cash flows from investing activities: Net cash flow from operating activities Cash flows from investing activities: $ 0 Net cash flow from investing activities Cash flows from financing activities: Net cash inflow from financing activities 0 0 Cash, beginning of 2020 Cash, end of 2020 $ 0 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 earings ratio Capital expenditures ratio