thought with only two principles of finance. 2. (15 pts) Fitch Inc.'s financial statements are as follows: Fitch Inc. Income Statement For the Period ended 12/31/x6 in $000 Sales COGS Gross Margin Fitch Inc. Balance sheet For the Period ended 12/311x6 (in $000) ASSETS $40, 506 14,177 12/31/x5 12/31/x6 Cash 2,165 4,832 3,217 5,614 Accounts receivable Inventory 19.487 $6,842 CURRENT ASSETS $ 10,214 Fixed Assets 1.104 180 Interest EBT Tax (34%) Net Income $6,662 12.265 $4,397 Gross Accumulated $ 35,183 (22,640) $39, 456 (24,852) ion $12, 543 $22,757 Net $14,604 $25,708 Total Assets LIABILITIES Accounts payable $ 1,642 $1,420 1,228 $2,648 Accruals CURRENT LIABILITIES Long-term debt $1,823 438 $2,080 TOTAL CAPITAL TOTAL LIABILITIES $22,757 18,854 $20,677 $409 22,651 $23,060 $25,708 AND EQUITY In addition, Fitch also sold stock for $2.5 million and paid dividends of $3.1 million. No g the year. That implies fixed assets purchases and are the only changes in the gross fixed assets and accumulated depreciation depreciation accounts. (15 pts) Calculate Fitch's free cash flows from operations. (5 pts) Using the fundamental accounting identity, A = L + OE, what were its uses of free cash flows