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13. Wooden Co. has just reported $363,780 of sales and $168,445 of operating costs excluding depreciation which was accounted for $37,120. As for the company's

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13. Wooden Co. has just reported $363,780 of sales and $168,445 of operating costs excluding depreciation which was accounted for $37,120. As for the company's bonds outstanding they recorded a total of $63,500 carrying 5.72% interest rate compounded annually. During prior year, they carried out expenditures, necessary for it to sustain operations and generate future sales and cash flows, on fixed assets of $88,700 while operating with a net working capital of $31,214. Unlike its pervious year the company's data will keep its steady recording except for the depreciation changing by an increase of $3,740. Thus, assuming the company uses the same depreciation for tax and stockholder reporting purposes, by how much will the depreciation change cause (1) the firm's net income and (2) its free cash flow to change? Tax rate is 30%. * O -$1,258 ; $870 O -$2,618; 51,122 O-$2,713; $1,703 -$975.77 ; $863.22 None of the above

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