10. Determine Free Cash Flows from the given income statements and balance sheets. Smith Brothers Corporation Income Statements for Year Ending December 31 (Millions of Dollars) 2016 $300 255 $ 45 2017 Sales $360 Operating costs excluding depreciation 306 EBITDA $ 54 Depreciation EBIT $ 45 Interest EBT S 38 Taxes (40%) _15 Net income S 23 $ 38 $ 32 13 S 19 Smith Brothers Corporation Balance Sheets as of December 31 (Millions of Dollars) Assets 2017 2016 Cash Accounts receivable Inventories 54 60 Total current assets $1 Net plant & equipment 100 75 Total assets $212 $183 20 16 18 S 62 Liabilities and Equity Accounts payable $ 32 $ 28 Notes payable Accrued liabilities S 74 Total current liabilities Long-term bonds 55 45 Total debt $129 $107 Common stock (50,000,000 shares) Retained earnings 68 61 Common equity $ 83 $ 76 Total liabilities and equity $212 $183 15