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: One-fourth of the sales and one-third of the purchases were made on credit. 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.) 2. Compute the quality of earnings ratio and the capital expenditures ratio. (Enter you answers in numbers and not in percentages. Round the final answers to 2 decima places.)