Financial statements for Hilton Company are presented below Hilton Company Balance Sheet December 31, 2017 Asscts Cash Accounts receivable Buildings and equipment Accumulated depreciation S40,000 35,000 150,000 Accounts payable Bonds payable Common stock Retained earnings S 20,000 50,000 65,000 60,000 195.000 buildings and equipment Patents (50,000) $195.000 Hilton Company Statement of Cash Flows December 31, 2017 Cash flows from operating activities Net income Adjustments to reconcile net income to net cash S50,000 provided by operating activities: Increase in accounts receivable Increase in accounts payable Depreciation- buildings and equipment Gain on sale of equipment Amortization of patents S(16,000) 8,000 15,000 (6,000) Net cash provided by operating activities Cash flows from investing activities 3,000 Sale of equipment Purchase of land Purchase of buildings and equipment 12,000 (25,000) Net cash used by investing activities Cash flows from financing activities (61,000) Payment of cash dividend Sale of bonds (15,000) Net cash provided by financing activities Net increase in cash Cash, January 1, 2017 Cash, December 31, 2017 15,000 7,000 33.000 At the beginning of 2017, Accounts Payable amounted to $12,000 and Bonds Payable was $20,000. Instructions Calculate the following for Hilton Company: a. Current cash debt coverage b. Cash debt coverage c. Free cash flow d. Explain the purpose of free cash flow analysis