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( Calculating free cash flows ) Spartan Stores is expanding operations with the introduction of a new distribution center. Not only will sales increase but

(Calculating free cash flows) Spartan Stores is expanding operations with the introduction of a new distribution center. Not only will sales increase but investment in inventory will decline due to increased efficiencies in getting inventory to showrooms. As a result of this new distribution center, Spartan expects a change in EBIT of $980,000. Although inventory is expected to drop from $88,000 to $65,000, accounts receivables are expected to climb as a result of increased credit sales from $83,000 to $200,000. In addition, accounts payable are expected to increase from $62,000 to $90,000. This project will also produce $350,000 of bonus depreciation in year 1 and Spartan Stores is in the 31 percent marginal tax rate. What is
the project's free cash flow in year 1?
The project's free cash flow in year 1 is $
(Round to the nearest dollar.)
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