Q1. Rosnan Industries' 2017 and 2018 Balance Sheets, Income Statements and other pertinent information are shown below. What is Rosnan's 2018 Free Cash Flow? Q2. Using the same statements presented below, what is Rosnan's 2018 Debt to Capital Ratio? Q3. If a firm takes on additional debt, briefly explain (with reasons) what effect this decision has on it's 1) interest expense, 2) corporate taxes and 3) net income. Answer all three effects for full credit. \begin{tabular}{|l|l|l|} \hline & 2018 & 2017 \\ \hline Cash and equivalents & $100 & $85 \\ \hline Accounts receivable & $275 & $300 \\ \hline Inventories & $375 & $250 \\ \hline Total current assets & $750 & $635 \\ \hline Net plant and equipment & $2,000 & $1,490 \\ \hline Total assets & $2,750 & $2,125 \\ \hline Accounts payable & $150 & $85 \\ \hline Accruals & $75 & $50 \\ \hline Notes payable & $1,225 & $1,225 \\ \hline Total current liabilities & $150 & $75 \\ \hline Long-term debt & $375 & $210 \\ \hline Common stock & $400 \\ \hline Rotained earnings & $290 \\ \hline \end{tabular}