Bailey Corporation's financial statements (dollars and shares are in millions) are provided here.

Bailey Corporation

(in million of dollars)

Balance Sheets as of December 31

2016

2015

Assets

Cash and cash equivalents

$ 14,000

$ 13,000

Accounts receivable

30,000

25,000

Inventories

28,125

21,000

Total current assets

$ 72,125

$ 59,000

Net fixed assets

50,000

47,000

Total assets

$ 122,125

$ 106,000

Liabilities and equity

Accounts payable

$ 10,800

$ 9,000

Notes payable

6,700

5,150

Accruals

7,600

6,000

Total current liabilities

$ 25,100

$ 20,150

Long-term bonds

15,000

15,000

Total liabilities

$ 40,100

$ 35,150

Common stock

50,000

50,000

Retained Earnings

32,025

20,850

Total common equity

$ 82,025

$ 70,850

Total liabilities and equity

Income Statement for Year Ending				2016
Sales				$214,000
Expenses excl. depr & amort.				170,000
EBITDA				$44,000
Depreciation and amortization				5,000
EBIT				$39,000
Interest expense				1,750
EBT				$37,250
Taxes (40%)				14,900
Net Income				$22,350
Dividends paid				$11,175
a. What was the change in Bailey's net operating working capital from 2015 to 2016?
NOWC =							write the formula
							calculate the answer
b. What was Bailey's 2016 free cash flow?
FCF =								write the formula
								calculate the answer

$ 122,125

$ 106,000