Accounting statements represent a company's earnings, but this is not the real cash that a company generates. Earnings data can be manipulated and can be deceiving. Thus, corporate decision makers and security analysts focus on the free cash flow that a firm generates to analyze the company's real cash position Which of the following statements best describes free cash flow? o The amount of a firm's available cash that can be used without harming operations or the ability to produce future cash flows O The amount of a firm's available cash used to write off capital expenditures and depreciation Suppose you are the only owner of a chain of coffee shops near universities. Your current cafes are doing well, but you are interested in starting a fine dining restaurant. You decide to use the cash generated from your existing business to enter into a new business. Your accountant provides you with the following data on your current financial performance: GOO Financial update as of June 15 Your existing business generates $87,000 in EBIT. The corporate tax rate applicable to your business is 35%. The depreciation expense reported in the financial statements is $16,571. You don't need to spend any money for new equipment in your existing cafes; however, you do need $13,050 of additional cash. You also need to purchase $6,960 in additional supplies such as cloth tableclothes and napkins, and more formal tableware--on credit. It is also estimated that your accruals, including taxes and wages payable, will increase by $4,350. Based on your evaluation you have $116,621 n free cash flow