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A firm has sales of $50,000 , EBIT of $10,000 , depreciation of $4,000 , and fixed assets increased by $2,000 . If the firm's

A firm has sales of

$50,000

, EBIT of

$10,000

, depreciation of

$4,000

, and fixed assets increased by

$2,000

. If the firm's tax rate is 30 percent and there was a

$1,000

increase in net operating working capital, what is the firm's free cash flow?\

$1,200

\

$10,000

\

$9,000

\

$8,000
image text in transcribed
A firm has sales of $50,000, EBIT of $10,000, depreciation of $4,000, and fixed assets increased by $2,000. If the firm's tax rate is 30 percent and there was a $1,000 increase in net operating working capital, what is the firm's free cash flow? $1,200 $10,000 $9,000 $8,000

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