Selected financial information for Frank Corporation is presented below.Selected 2017 transactions are as follows:a. Purchased investment securities for $5,200 cash.b. Borrowed $15,400 on a two-year, 8 percent interest-bearing note.c. During 2017, sold machinery for its carrying amount; received $11,300 incash.d.Purchased machinery for $50,400; paid $9,200 in cash and signed a four-year note payable to the dealer for $41,200.e. Declared and paid a cash dividend of $10,200 on December 31, 2017.Selected account balances at December 31, 2016 and 2017 are as follows:December 3120172016$ 77,400 $21,200CashAccounts receivableInventoryAccounts payableAccrued wages17,20052,2007,20012,10060,40010,4009001,200payableIncome taxes payable5,2003,100One-fourth of the sales and one-third of the purchases were made on credit.FRANK CORPORATIONStatement of EarningsFor the Year Ended December 31, 2017$404,000270,000Sales revenueCost of salesGross profitExpensesSalaries and134,000$51,200wages9,4006,000DepreciationRent (no accruals)Interest (noaccruals)Income tax12,40012,000Total expenses91,000Net earnings$ 43,000Required: ratioСapitalexpenditures ratio1.07

1 Statement of cash flows For the year ended Dec 31 2017 Cash flow from operating…

Answered: investment securities for $5, 15,400 on…

Business

Accounting

investment securities for $5, 15,400 on a two-year, 8 per= 7, sold machinery for its ca machinery for $50 400: nai

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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