Calculate the free cash flow for Kent Incorporated for the year ended December 31, 2008. Kent Incorporated Balance Sheet For 12/31/2007 and 12/31/2008 2007 2008 Cash $178,000 $200,000 Accounts receivable 128,000 140,000 Inventory 224,000 200,000 Prepaid expenses 20,000 20,000 Total current assets 550,000 560,000 Plant and equipment 476,000 622,000 Accumulated depreciation (80,000) (132,000) Total assets $946,000 $1,050,000 Accounts payable $170,000 $180,000 Accrued expenses 136,000 126,000 Total current debt 306,000 306,000 Mortgage payable 140,000 0 Preferred stock 0 240,000 Common stock 410,000 410,000 Retained earnings 90,000 94,000 Total debt and equity $946,000 $1,050,000 Kent Incorporated Income Statement For the Year Ended 12/31/2008 Revenue (all credit) $368,000 Cost of goods sold (120,000) Gross profit $248,000 Selling, general and admin. Expenses (88,000) Depreciation expense (52,000) Operating income $108,000 Interest expense (8,000) Earnings before taxes 100,000 Taxes (32,000) Net income $68,000 Preferred stock dividends (20,000) Net income avail. to common shareholders $ 48,000 Additional information: 1. The only entry in the accumulated depreciation account was for 2008 depreciation. 2. The firm paid $44,000 in common stock dividends during 2008. 6