Question 2 is only there for reference, I am looking for help with Number 3 only

2. (15 pts) Fitch Inc.'s financial statements are as follows: HiTech, Inc. HiTech Inc. Balance sheet For Periods that Ended 12/31/x7 and 12/31/x8 Income Statement For the Period ended (in $000) 12/31/x8 (in $000) ASSETS $40, 506 14,177 $26,329 Sales 12/31/x7 2,165 COGS 12/31/x8 $ 2,647 Cash Gross Margin Expense 19,487 $6,842 Accounts receivable 4,832 3,217 $10,214 5,614 2,843 11,104 Inventory CURRENT ASSETS EBIT Interest 180 $6,662 2,265 $4,397 Fixed Assets T $ 35,183 (22,640) Tax (34%) Net Income $39, 456 (24,852) Gross Accumulated Depreciation Net $12, 543 $22,757 $14,604 $25,708 Total Assets LIABILITIES Accounts payable Accruals 1,642 $1,420 1,228 $2,648 438 $2,080 CURRENT LIABILITIES Long-term debt Equity TOTAL CAPITAL $1,823 18,854 $20,677 LIABILITIES $22,757 $409 22,651 $23,060 $25,708 TAL AND EQUITY In addition, HiTech also sold stock for $2.5 million and paid dividends of $3.1 million. No fixed assets were retired during the year. That implies fixed assets purchas es and depreciation are the only changes in the gross fixed assets and accumulated depreciation accounts. (15 pts) Calculate HiTech's free cash flows from operations. (5 pts) Using the fundamental accounting identity, A L OE, what were its uses of free cash flows? 3 (10 pts) (10 pts) The industry norms for year 2x18 are as follows: Industry (2018) 2017 2018 Current ratio Quick ratio Avg.collection Period Days in Inventory 2.0 1.5 49.2 days 45.1 Days 46.2 25.0 0.9 Fixed Asset turnover 2.2 Use the industry norms above and HiTech's financial statements in problem 2 above to assess HiTech's liquidity and asset management 2. (15 pts) Fitch Inc.'s financial statements are as follows: HiTech, Inc. HiTech Inc. Balance sheet For Periods that Ended 12/31/x7 and 12/31/x8 Income Statement For the Period ended (in $000) 12/31/x8 (in $000) ASSETS $40, 506 14,177 $26,329 Sales 12/31/x7 2,165 COGS 12/31/x8 $ 2,647 Cash Gross Margin Expense 19,487 $6,842 Accounts receivable 4,832 3,217 $10,214 5,614 2,843 11,104 Inventory CURRENT ASSETS EBIT Interest 180 $6,662 2,265 $4,397 Fixed Assets T $ 35,183 (22,640) Tax (34%) Net Income $39, 456 (24,852) Gross Accumulated Depreciation Net $12, 543 $22,757 $14,604 $25,708 Total Assets LIABILITIES Accounts payable Accruals 1,642 $1,420 1,228 $2,648 438 $2,080 CURRENT LIABILITIES Long-term debt Equity TOTAL CAPITAL $1,823 18,854 $20,677 LIABILITIES $22,757 $409 22,651 $23,060 $25,708 TAL AND EQUITY In addition, HiTech also sold stock for $2.5 million and paid dividends of $3.1 million. No fixed assets were retired during the year. That implies fixed assets purchas es and depreciation are the only changes in the gross fixed assets and accumulated depreciation accounts. (15 pts) Calculate HiTech's free cash flows from operations. (5 pts) Using the fundamental accounting identity, A L OE, what were its uses of free cash flows? 3 (10 pts) (10 pts) The industry norms for year 2x18 are as follows: Industry (2018) 2017 2018 Current ratio Quick ratio Avg.collection Period Days in Inventory 2.0 1.5 49.2 days 45.1 Days 46.2 25.0 0.9 Fixed Asset turnover 2.2 Use the industry norms above and HiTech's financial statements in problem 2 above to assess HiTech's liquidity and asset management