Prepare a statement of cash flows for the year. Write the formulas for each. Complete the financila statement ratios.

A comparative balance sheet and an income statement for Rowan Company are given below.'l Rowan Com pany Comparative Balance Sheet Rowan Com pany 'ncome Staterpent For the YeatEnded December 31 (dollars In mllliors) dollars in mill lox) Ending Beginnlrw Balance Balance Sales Assets Current assets: Cash and cash equivalents Accounts receivable Inventory Total current assets Property plant, and equipment Less accumulated depreciation Net property, plant, and equi ment Total assets ) Uabllltles and Stockholdersl E uity ) Current liabilities: Accounts payable Accrued liabifities Income taxes payable Total current liabilities Bonds payable Total liabilities Stockholders' equity: Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 70 536 620 1,226 1,719 640, 1,079 2 30s 205 94 72 371 180 551 800 954 1,754 2 305 Cost of goods sol 91 Gross 572 selling and adT2 580 Neapeatin 1,656 Incore 480 Income 1,176 2 419 exp nses n sa e of equ pmento , .50 3,470 82b 22 42 -&sKoes 683 e company d n issue eW nds diiriog 00 h mpa paid s di den u ng 9361 I Ill 1,736 any apy 2 419 stockt a Required 1: Using indired method, prepare a statement of cash flows for the year ? is n each cell you *Chedflgures you an use: given label for the three activities sections (cash provided y Jsedin)' beginning ondending ashfroff the sheet (and therefore the dange In * Required 2: Complete the following Inanciaj statemen! ratios/ Rowan Com pany Statement of Cash Flows use two dedrmls where neessary. 365 Is the only plug nurber you should have! dollars In millions) Operating activities: Net income Adjustments to convert net income to cash basis: Depreciation Decrease in accounts receivable Increase in inventory Increase in accounts pa able Decrease in acrued liabilities Decrease in income taxes payable Gain on sale of equipment Net cash activities Investing activities: Free cash flow amount Current ratio at the end of the year Acid-test (quick) ratio at 'the end of the ear Accounts receivable turnover Average collection period (assume all sajes are on account) Inventory turnover Average sales period days Debt-to-equity ratio at the end of the ypar Equitvnultjplier Net profit margin percentage Return on equifypercentage Proceeds from sale of equipment Average number of common shares outstanding Additions to property, plant, and equipment Net cash used in investing activities Financing activities: Retired bonds payable Cash dividends Net cash used in financing activites Net decrease in cash Beginning cash and cash equivalents Ending cash and cash equivalents (leave jn thousands) Earnings per share Divided per share Dividend out ratio