Selected financial information for Frank Corporation is presented below.

Selected financial information for Frank Corporation is presented below. Selected 2017 transactions are as follows: a. Purchased investment securities for $5,100 cash. b. Borrowed $15,200 on a two-year, 8 percent interest-bearing note. c. During 2017, sold machinery for its carrying amount; received $11,150 in cash. d. Purchased machinery for $50,200; paid $9,100 in cash and signed a four-year note payable to the dealer for $41,100. e. Declared and paid a cash dividend of $10,100 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 $76,700 $ 21,100 17,100 12,050 52,100 60,200 7,100 10,200 850 1,100 5,100 3,050 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 $402,000 Cost of sales 269,000 133,000 Gross profit Expenses Salaries and wages Depreciation Rent (no accruals) Interest (no accruals) Income tax $ 51,100 9,300 5,900 12,300 11,900 Total expenses 90,500 Net earnings $ 42,500 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: Net earnings Add (deduct) items not affecting cash: Depreciation expense Increase in accounts receivable $ 0 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 2017 Cash, end of 2017 $ 0 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