Use the following income statements and balance sheets to calculate Garnet Inc.’s free cash flow for 2008.

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Garnet Inc. Income Statement Net sales Costs (except depreciation) Depreciation Total operating costs Earnings before interest and taxes (EBIT) Less interest Earnings before taxes Taxes (40%) Net income Balance Sheet Assets Cash Marketable securities Accounts receivable Inventories Total current assets Net plant and equipment Total assets Liabilities and Equity Accounts payable Notes payable Accruals Total current liabilities Long-term bonds Common stock Retained earnings Common equity Total liabilities and equity 2008 $530.0 400.0 30.0 $430.0 100.0 23.0 $77.0 30.8 $ 46.2 $ 28.0 69.0 81.0 112.0 $293.0 281.0 $574.0 $ 56.0 138.0 28.0 $222.0 173.0 100.0 79.0 $179.0 $574.0 2007 $500.0 380.0 25.0 $405.0 95.0 21.0 $74.0 29.6 $ 44.4 $ 27.0 66.0 80.0 106.0 $279.0 265.0 $544.0 $ 52.0 130.0 28.0 $210.0 164.0 100.0 70.0 $170.0 $544.0