Nurmagomedov Company is in the business of manufacturing carpet in Nilai, Negeri Sembilan. The business has grown steadily and since you are his best friend and knew a little bit of finance, he has requested you to assist him in analyzing his company's financial statement. You have acquiesced to his request, eventhough you just took one course in finance.

Please refer to Table-1 below to answer the following questions:-

Table-1Nurmagomedov CompanyBalance Sheet (RM'000)Income Statement (RM'000)For the period ended 12/31/2020AssetsSales10,00012/31/201912/31/2020COGS6,000Cash1,0001,800Gross margin4,000Accounts receivable3,0002,900Inventory2,0003,200Expense1,600CURRENT ASSETS6,0007,900Depreciation500Fixed assetsEBIT1,900Gross4,0006,000Interest400Accumulated deprec.1,0001,500Pretax Income1,500Net3,0004,500Tax500TOTAL ASSETS9,00012,400Net Income1,000LiabilitiesAccounts payable1,5002,100Accruals500400CURRENT LIABILITIES2,0002,500Long-term debt5,0006,200Equity2,0003,700TOTAL CAPITAL7,0009,900TOTAL LIABILITIES AND EQUITY9,00012,400

Additional Information:

Firm paid RM500 in dividend in 2020

Firm sold RM1,000 common stocks in 2020.

i.Calculate the Free Cash Flow that incorporates and shows the (a) Operating Cash Flows (OCF) , (b) Net Fixed Asset Investment (NFAI) and (c) Net Current Asset Investment (NCAI) calculation.

(8.5 marks)

ii.What is the main reason why major companies develop strategic or long-term plan?

(3 marks)

iii.What is the key input figure or "driver" of any financial plan and which department provides those figures?