1. Given the information below calculate Blue Cloud Computings Free Cash Flow (10 Points)

FCF = ((EBIT * (1-Tax Rate) + (Depreciation and Amortization)) - (Capital Expenditures + Change in Net Operating Working Capital))

	2014
Net Sales	$3,000.0
Operating costs except depreciation	$2,616.2
Depreciation	$100.0
Operating Income (EBIT)	$283.8
Less Interest	$88.0
Earnings before taxes (EBT)	$195.8
Taxes (40%)	$78.3
Net Income	$117.5
Capital Expenditures	$230.0
Change in Net Operating Working Capital	$150.0