Selected financial information for Frank Corporation is presented below. Selected 2017 transactions are as follows: a. Purchased investment securities for $6,700 cash. b. Borrowed $18,400 on a two-year, 8 percent interest-bearing note. c During 2017, sold machinery for its carrying amount; received $13,550 in cash. d. Purchased machinery for $53,400; paid $10,700 in cash and signed a four-year note payable to the dealer for $42,700. e Declared and paid a cash dividend of $11700 on December 31, 2017 Selected account balances at December 31, 2016 and 2017 are as follows: December 31 Cash Accounts receivable Inventory Accounts payable Accrued wages payable Income taxes payable 2017 2016 $87,900 $22,700 18,700 12,850 53,700 63,400 8,700 13,400 1,650 2,700 6,700 3,850 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 $434,000 Cost of sales 285,000 149,000 Gross profit Expenses Salaries and wages Depreciation Rent (no accruals) Interest (no accruals) Income tax $52.700 10,900 7,500 13,900 13.500 Total expenses 98,500 Net earnings $ 50.500 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 $ 0 Net cash flow from investing activities Cash flows from, financing activities 0 Net cash inflow from financing activities Cash beginning of 2017 Cash, end of 2017 9 0