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 ($000) Income statement For the period ended 12/31/18 ($000) ASSETS 2/31/1712/31/18 Cash 3,514 $2,875 Sales 67421$5583_1-COGS-Is-19,925 12,829 11,678 Expense 36,227 Acc. Rec. Gross nventory CURRENT ASSETS S 2,573 3,220 margin 16,302 s 10,868 preciation xed assets EBIT S 4,268 $22 478S 24,360 Interest S 713 Acccum. Dep. Net (12,147) S(13,313) EBT S 3,555 S 10,331 11,047 Tax S 1.605 Net Income S-1950 OTAL ASSETS $ 23,160 22,725 LIABILITIES & Equity PayableS 1,556 als 1,702 268 408 CURRENT LIABILITIES 1,824 IS 2110 erm debt S 7,112 S 6,002 $ 14,224 21.336 14,613 20,615 TOTAL AL LIABILITIES AND 23,160 22,725 4. Haiti 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, resulting in a decrease in its private savings. Use the model of an open economy (loanable funds model) to determine: a) (5 pts) the effects on national savings, b) (5 pts) net foreign investment and net export, c) (5 pts) nominal and real exchange rates (Gourdes/USS), and d) (5 pts) the nominal and real interest rates in Haiti