3. (10 pts) Use Naxtel Company's balance sheets and income statement below to calculate its free cash flows from operations. (10 pts) How does Naxtel use these free cash flows from operations? Naxtel Company Naxtel Company Balance Sheets For 12/31/2017 &12/31/18 (s000) Income statement- For the period ended 12/31/18 ($000) ASSETS 12/31/17 12/31/18 Cash 3,514 $2,875 Sales 36,227 | 6742 |$ 5,583 | COGS |$ 19,925 3,220 margin 16,302 preciations 10,868 Acc. Rec Gross S 2,573 n 5 CURRENT ASSETS 12,829 11,678 Expense Depreciation xed assets EBIT S 4,268 Accum. Dep. Net $22 478S 24,360 Interest S 713 |$ S 10,331 (12,147) |$ (133131 3,555 11,047 Tax S 1.605 EBT IS Net Income S 1,950 OTAL ASSETS $ 23,160 22,725 LIABILITIES& Equity S 1702 268 408 RENT LIABILITIES $ 1,824 S 2,110 1,556 is an open economy located in the West Indies, on the island of Hispaniola. In 2010 a massive earthquake brought devastation and chaos to the impoverished island and, among other things, destroyed a great deal of the country's capital stock. The reduction in the capital stock had a significant reduction in the country's output and income. Assume that the country's marginal propensity to consume is less than unity decrease in its private savings.I