P5-2 Preparing the Statement of Cash Flows (Indirect Method) LO5-1, 5-2, 5-3, 5-5, 5-7 Selected...
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P5-2 Preparing the Statement of Cash Flows (Indirect Method) LO5-1, 5-2, 5-3, 5-5, 5-7 Selected financial information for Frank Corporation is presented below. Selected 2020 transactions are as follows: a. Purchased investment securities for $5,900 cash. b. Borrowed $16,800 on a two-year, 8 percent interest-bearing note. c. During 2020 , sold machinery for its carrying amount; received $12,350 in cash. d. Purchased machinery for $51,800; paid $9,900 in cash and signed a four-year note payable to the dealer for $41,900. e. Declared and paid a cash dividend of $10,900 on December 31, 2020. Selected account balances at December 31, 2019 and 2020 are as follows: One-fourth of the sales and one-third of the purchases were made on credit. Required: . Prepare a statement of cash flows for the year ended December 31, 2020 by using the indirect method. (Negative answers should be indicated by a minus sign.) 2. This part of the question is not part of your Connect assignment. 3. 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.)
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