A firm has sales of $$690,000,$ EBIT of $$300,000,$ depreciation of $$40,000,$ and capital spending increased by $$265,000.$ If the firm's tax rate is $40\%$ and there were no increases in net operating working capital, what is the firm's free cash flow?

Question $17$Answer

a$.$

$$15,000$

b$.$

$$75,000$

c$.$

$-$$$45,000$

d$.$

$-$$$55,000$