Financial Update as of June 15
-your exisiting business generates $147,000 in EBIT
-The corporate tax rate applicable to your business is 35%
-The deprecation expense reported in the financial statement is $28,000
-you don’t need to spend any money for new equipment in your exisiting cafes; however, you do need $22,050 of additional cash
-you also need to purchase $11,760 in additional supplies- such as cloth tablecloths and napkins, and more formal tableware- on credit
-It is also estimated that your accruals, including taxes and wages payable, will increase by $7,350
Based on your evaluation you have ____ in free cash flow.
A. $197,050 B. $113,260 C. $108,850 D. $172,060