3. Use the financial statements to calculate free cash flow (FCF) for Year 2.

Mammoth Mart Inc. Income Statement and Balance Sheet ($000s)
	Year 1	Year 2
Revenue	$ 29,210	$ 30,817
Cost of Goods Sold	22,152	23,371
SG&A	5,245	5,534
Depreciation Expense	621	640
EBIT	1,192	1,272
Interest Expense	277	283
Earnings before Taxes	915	989
Income Taxes	288	311
Net Earnings	$ 627	678
Current Assets	Year 1	Year 2
Cash	$ 1,467	$ 1,548
Accounts Receivable	649	684
Inventories	2,269	2,394
Total Current Assets	4,385	$ 4,626
Net Fixed Assets	9,637	9,939
Goodwill	678	678
Total Assets	$ 14,700	$ 15,243
Current Liabilities
Short Term Debt	$ 715	$ 715
Accounts payable	2,936	3,097
Total Current Liabilities	3,651	3,812
Long Term Debt	4,208	3,912
Other Liabilities	560	560
Total Liabilities	$ 8,419	$ 8,284
Common Stock	1,192	1,192
Retained Earnings	5,089	5,767
Total Owners Equity	6,281	6,959
Liabilities & Owners Equity	$ 14,700	$15,243