$400 EBIT (Earnings before interest and taxes) $100 Interest expensed and paid 40% Income tax rate on all income $180 Net Income ($400 - 100 - 40% x (400 - 100)) $200 Depreciation $540 Capital expenditures S 80 Increase in required non-cash working capital S 20 Increase in required cash $400 Increase in debt financing S 90 Paid in common dividends S 70 Change in cash balance on the balance sheet $300 Cash Flow from Operations 1. Calculate Unlevered Free Cash Flow 2. Calculate Equity free cash flow 3. Calculate the Change in Cash balance