The $3$M Company is a global diversified technology company active in various product markets. The template attached to problem presents information from the statement of cash flows and income statement for the $3$M Company for Year $3,$ Year $4,$ and Year $5.$ During that period, $3$M decreased cash and cash equivalents. The interest income reported by $3$M pertains to interest earned on cash and marketable securities$.3$M holds only small amounts of investments in marketable securities$.3$M$\text{'}$s income tax rate is $35\%.$

Use the template attached to problem to calculate the following:

$1)$ Beginning with cash flows from operating activities, calculate the amount of free cash flows to all debt and equity capital stakeholders for $3$M for Years $3,4,$ and $5.$

$2)$ Beginning with cash flows from operating activities, calculate the amount of free cash flows $3$M generated for common equity shareholders in Years $3,4,$ and $5.$

$3)$ Reconcile the amounts of free cash flows $3$M generated for common equity shareholders in Year $3,4,$ and $5$ from $2)$ with $3$M$\text{'}$s uses of cash flows for equity shareholders, including share repurchases and dividend payments. Source: $3$M Company, Form $10-$K for Fiscal Year Ended December, Year $5.$

Year $5$

Year $4$

Year $3$

Free cash flows $($FCF$)$ for all debt and equity stakeholders:

Net cash provided by operating activities

Interest paid net of taxes$)[$interest paid $*(1-0\mathrm{.}35)]$

Cash required for liquidity $($net increase$/$decrease cash$)$

FCF from operations to all debt and equity stakeholders

Cash flow from investing activities

FCF to all debt and equity stakeholders

Free cash flows $($FCF$)$ for common equity shareholders:

Net cash provided by operating activities

Cash required for liquidity $($net increase$/$decrease cash$)$

Cash flow from investing activities

$($Decrease$)$ increase in bank overdraft

$($Decrease$)$ increase in long$-$term debt and capital lease

FCF to common equity shareholders