Problem 2: Reformulate the Income Statement using the following information and chart: (SM) Gross Sales $6,000 Returns and Allowances=3% cost of Goods Sold=26% of Gross Sales Administrative and Selling Expenses-5% of Gross Sales, Marginal Tax rate is 35% Depreciation Expense=$1,250, Interest Expense is $595M and Interest Income is $427 M. LABEL and Reformulate the Income Statement Using the Chart show the after-tax basis (AT) adjustments' Problem 3: Part A: Treasurer's Rule: A firm generated $165 million in free cash flow and paid a net dividend of $55 million to shareholders. How much was paid to debtholders and debt issuers? Answer: Part B: A firm paid a dividend to shareholders of $175 million and repurchased stock for $65 million. There were $10 million new shares issues. The firm received net cash of $98 million from debt financing transactions. What was the free cash flow