Selected financial information for Frank Corporation is presented below.

Selected 2017 transactions are as follows:

a.	Purchased investment securities for $6,500 cash.
b.	Borrowed $18,000 on a two-year, 8 percent interest-bearing note.
c.	During 2017, sold machinery for its carrying amount; received $13,250 in cash.
d.	Purchased machinery for $53,000; paid $10,500 in cash and signed a four-year note payable to the dealer for $42,500.
e.	Declared and paid a cash dividend of $11,500 on December 31, 2017.

Selected account balances at December 31, 2016 and 2017 are as follows:

	December 31
	2017			2016
Cash	$	86,500		$	22,500
Accounts receivable		18,500			12,750
Inventory		53,500			63,000
Accounts payable		8,500			13,000
Accrued wages payable		1,550			2,500
Income taxes payable		6,500			3,750

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				$	430,000
Cost of sales					283,000
Gross profit					147,000
Expenses
Salaries and wages	$	52,500
Depreciation		10,700
Rent (no accruals)		7,300
Interest (no accruals)		13,700
Income tax		13,300
Total expenses					97,500
Net earnings				$	49,500

Required . Prepare a slatement of cash flows for the year ended Decernber 31, 2017 by using the indirect method (Negative answers should be indicated by a minus sign.) K CORPORATION For the Year Ended December 31, 2017 Cash flaws fram aperating activites: Is 49,500 ) Net eamings Add (deduct) items not affecting cash: 10,700 0 | 5.750 Increase in accounts receivable Decrease in inventory Increase in income tax payable Decrease in accounts payable Decrease in wages payable 2,750 (4400) (950) Net cash flow from operating activities 2.850 Cash flaws from investing activities: Purchase of machinery (10,500) (6.500) 13,250 Sale of machinery Net cash flow from investing activities (3,750) Cash flaws from finaningactivities: 18,000 Borrowing on long-term note Payment of cash dividend 01 11,500 Net cash inflow from financing activities Net increase in cash during 2017 Cash, beginning of 2017 Cash, end of 2017 29,500 98,600 22,500 121,100