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 70 536 620 1,226 1) 719 640 1,079 $2,305 S 91 572 580 1,243 1,656 480 19176 $2,419 ces Assets Current assets Cash and cash equivalents Accounts receivable Inventory Total current set Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued abilities Income taxes payable Total current liabilities Bonds payable Total liabilities Stockholders' equity: Common stock Retained earnings Total stockholders equity Total liabillion and stockholders equity $ 205 94 72 321 180 551 180 105 88 373 310 683 800 954 21754 $2,305 800 936 11,736 92,419 Rowan Company Income Statement For the Year Ended December 31 (dollars in millions) Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items: Gain on sale of equipment Income before taxes Income taxes Net income $ 4,350 3,470 880 820 60 4 64 22 $ 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 pald 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: 3. Net profit margin percentage b. Return on equity 7. To help Rowan assess its market performance, calculate the following (ossume the par value of the company's common stock is $10 per share) a. Earnings per shore b. Dividend payout ratio