A comparative balance sheet and an Income statement for Rowan Company are given below Rowan Company Comparative Balance Sheet (dollars in millions) Ending Beginning Balance Balance Assets Current Ossett: Cash and cash equivalents $ 70 $ 91 Accounts receivable 572 Inventory 580 Total current assets 1,226 1, 243 Property, plant, and equipment 1,719 1, 656 Less accumulated depreciation Net property, plant, and equipment 1.079 1, 176 Total assets $ 2, 419 Liabilities and Stockholders" Equity Current Habilities: Accounts payable 5 205 $ 180 Accrued liabilities TUS Income taxes payable 73 Total current liabilities 171 Bonds payable Total Hisbillcien 551 Stockholders" equity: Common stock Retained earnings 936 Total stockholders equity 1,754 1, 736 Total liabilities and stockholders" equity $ 2,419Remain Company Income Statement For the Year Ended December 31 (dollars in millions] Sales Cost of goods sold 3.470 Gross margin 880 Selling and administrative expenses 820 Net operating income 60 Nonoperating items: Gain on sale of equipment Income before towes Income taxes Net income 5 42 Rowan also provided the following Information: 1. The company sold equipment that had an original cost of $16 million and accumulated depreciation of $9 million. The cash proceeds from the sale were $11 million. The gain on the sale was $4 million. 2. The company did not issue any new bonds during the year. 3. The company paid a cash dividend during the year. 4. The company did not complete any common stock transactions during the year.Required: 1. Using the Indirect method, prepare a statement of cash flows for the year. 2. Calculate the free cash flow for the year. 3. To help Rowan assess its liquidity at the end of the year. calculate the following: a. Current ratio b. Acid-test (quick) ratio 4, To help Rowan assess its asset management, calculate the following: a. Average collection period (assuming all sales are on account) b. Average sale period 5. To help Rowan assess Its debt management, calculate the following: a. Debt-to-equity ratio at the end of the year b. Equity multiplier 6. To help Rowan assess its profitability. calculate the following: a. Net profit margin percentage b. Return on equity 7. To help Rowan assess its market performance. calculate the following (assume the par value of the company's common stock is $10 per share] a. Earnings per share b. Dividend payout ratio\fComplete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required & Required 5 Required 6 Required 7 Calculate the free cash flow for the year (Enter your answer in millions not in dollars.) [10:1000 0007Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required Required 9 Required 6 Required 7 To help Rowan assess Its liquidity at the end of the year, calculate the following: n. Current radio b. Acid-test (quick) ratio (Round your answers to 2 decimal places.) Show Hila Current ratio 3.30 b. Aod best (quick) moo 1.63Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 To help Rowan assess Its asset management, calculate the following n. Average collection paried (assuming all sales are on account) b. Average sale period (Use 163 days in a year. Round your intermediate calculations and final answers to 2 decimal places.) Show lees a I Average collection period 40.50 days B. Average solo period 13.15Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required Required 5 Required 6 Required 7 To help Rowan assess its debt management, calculate the following a. Debt to equity ratio at the end of the year b. Equity multiplier (Round your answers to 2 decimal places.) Show Hasa . Debt-to equity ratio 0.31 b. Equity multipler 1.35Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required Required } Required $ Required 7 To help Rowan assess its profitability, calculate the following: D. Net profit margin percentage b. Return on equity (Round your percentage answers to 1 decimal place. ) Show His In Net profit margin percentage 1.0 b. Rotum on equity 24Complete this question by entering your answers in the tabs below. Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 To help Rowan assess its market performance, calculate the following (assume the par value of the company's common stock in $10 per share): . Earnings per share (Round your answer to 2 decimal places.) b. Dividend payout ratio (Round your intermediate calculations to 2 decimal places. Round your final answer to 1 decimal place.) Show lia a. Enmingo per share B. Dividend payout radio 85.0