6. 10 points) Last year your firm had revenue of $20.5 million, cost of goods sold (COGS) of $10.5 million, Selling, General, & Administration costs (SG&A) of $2.5 million, Account Receivables (AR) of $6.5 million, Account Payables (AP) of $5.0 million and Inventory of $4.0 million. What will be the free cash flow this year if you boost revenue 5.0% and AR 10.5%, while holding COGS growth to 3.0% and everything else remains the same as last year? Assume no taxes and no new capital expenditures. You are encouraged to use a spreadsheet even for this specific type of question.

$7,527,500.00

$8,072,440.18

$2,027,500.00

$8,210,000.00