Please answer the questions andshow ALL calculations:

Last year ABC Electric had $5 million in operating income (EBIT). Its depreciation expense was $1 million, its interest expense was $1 million and its corporate tax rate was 40%. At year-end, it has $14 million in current assets, $3 million in accounts payable, $1 million in accruals payable, $2 million in notes payable, and $15 million in net plant and equipment. Assume that ABCs only non cash item was depreciation.

Answer A through D. You must show your work not just the answer.

A. What was the companys net income?

B. What was its net operating working capital (NOWC)

C. ABC had $12 million in net plant and equipment the prior year. Its net working capital has remained constant over time. What is the companys free cash flow (FCF) for the year that just ended?

D. If the firm had $4.5 million in retained earnings at the beginning of the year and paid out total dividends of $1.2 million during the year, what are the retained earnings at the end of the current year? Assume that all dividends declared were actually paid. Dont forget the net income from part A.