Selected financial information for Frank Corporation is presented below. Selected 2017 transactions are as follows: a. Purchased investment securities for $6,900 cash. b. Borrowed $18,800 on a two-year, 8 percent interest-bearing note. c. During 2017, sold machinery for its carrying amount; received $13,850 in cash. d. Purchased machinery for $53,800; paid $10,900 in cash and signed a four-year note payable to the dealer for $42,900. e Declared and paid a cash dividend of $11,900 on December 31, 2017. Selected account balances at December 31, 2016 and 2017 are as follows: December 31 2016 Cash Accounts receivable Inventory Accounts payable Accrued wages payable Income taxes payable 2017 $89,300 $22,900 18,900 12,950 53,900 63,800 8,900 13,800 1,750 2,900 6,900 3,950 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 $438,000 Cost of sales 287,000 151,000 Gross profit Expenses Salaries and wages Depreciation Rent (no accruals) Interest (no accruals) Income tax $52,900 11,100 7,700 14,100 13,700 Total expenses 99,500 Net earnings $ 51,500 2. 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