RadioShack Corporation is a consumer electronics retailer. Recently, the company declared bankruptcy to provide financial protection while attempting to reorganize its operations. Annual report information for the three most recent years prior to the bankruptcy are as follows (in millions):

__________________________________________Year 3Year 2Year 1

Cash flows from operating activities.....................$ 36............$ (43)............$ 218

Cash used to purchase property, plant, and equipment (42)..............(68)..............(82)

Sales.........................................................3,434............3,831............4,032

A. Determine the free cash flow.

B. Determine the ratio of free cash flow to sales. (Round percentages to one decimal place.)

C. Did the free cash flow information indicate financial stress? Explain.