AK Company reported net income of

$300 million for the most recent fiscal year. The firm

had depreciation expenses of $125 million and capital expenditures of $150 million.

Although they had no interest expense, the firm did have an increase in net working capital

of $20 million. What is

AK's free cash flow?

a.

$170 million

b.

$255 million

c.

$150 million

d.

$5 million

e.

None of the above