Q3. Consider the balance sheets and selected data from the income statement of Keith Corporation that appear below: Assets December 31 2012 2011 Cash 1,500 1,000 Marketable Securities 1,800 1,200 Accounts receivables Inventories Total Current Assets Gross Fixed Assets Less: Accumulated Depreciation Net Fixed Assets Total Assets Liabilities and Stockholder's Equity Accounts payable Notes payable Accruals Total Current Liabilities Long-Term Debt 2,000 2.900 8.200 29,500 14.700 14,800 23,000 1,600 2,800 200 4,600 5.000 1,800 2,800 6,800 28,100 13,100 15.100 21,800 1,500 2,200 300 4,000 5.000 Total liabilities 9.600 10,000 3.400 Total Stockholder's equity 13,400 Total liab. And stockholder's equity 23,000 9,000 10,000 2,800 12,800 21,800 Common Stock Retained earnings Keith Corporations Income Statement (2012) Depreciation Expense 1,600 Earning Before Interest and Taxes (EBIT) 2,700 Interest Expense 367 Net Profit After Taxes 1,400 Tax Rate 40% a. Calculate the free cash flow (FCF) for the year ended December 31, 2012? b. Compute Return on invested capital for 2012? If the cost of capital is 10%, how is the firm performing? Discuss. (20 points)