Selected financial information for Frank Corporation is presented below. Selected 2020 transactions are as follows: : a. Purchased investment securities for $5.900 cash. Borrowed $16,800 on a two-year, 8 percent interest-bearing note. c. During 2020, sold machinery for its carrying amount; received $12,350 in cash. d. Purchased machinery for $51,800; paid $9,900 in cash and signed a four-year note payable to the dealer for $41,900. e Declared and paid a cash dividend of $10,900 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 $82,300 $21,900 17,900 12,450 52,900 61,800 7,900 11,800 1,250 1,900 5,900 3,450 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 $418,000 Cost of sales 272,000 Gross profit 141,000 Expenses Salaries and wages $51,900 Depreciation 10,100 Rent (no accruals) 6,700 Interest (no accruals) 13,100 Income tax 12,700 Total expenses 94,500 Net earnings $ 46,500 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.) 46,500 For the Year Ended December 31, 2020 Cash flows from operating activities: : Net earnings $ Add (deduct) items not affecting cash; Depreciation expense Increase in accounts receivable Decrease in inventory Decrease in accounts payable Decrease in wages payable Increase in income tax payable 10.100 (5.450) 8.900 (3.900) (650) 2.450 $ 57,950 Net cash flow from operating activities Cash flows from investing activities: ol 0 Net cash flow from investing activities Cash flows from financing activities: Purchase of investments Sale of machinery Purchase of machinery Net cash inflow from financing activities 0 57,950 Cash, beginning of 2020 Cash, end of 2020 $ 57.950 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