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Free Cash Flow Garnet Inc. Income Statement 2013 2012 Net sales $530.0 $500.0 Costs (except depreciation) 400.0 380.0 Depreciation 30.0 25.0 Total operating costs $430.0

Free Cash Flow

Garnet Inc.
Income Statement 2013 2012
Net sales $530.0 $500.0
Costs (except depreciation) 400.0 380.0
Depreciation 30.0 25.0
Total operating costs $430.0 $405.0
Earnings before interest and taxes (EBIT) 100.0 95.0
Less interest 23.0 21.0
Earnings before taxes $77.0 $74.0
Taxes (34%) 26.2 25.2
Net income 50.8 48.8
Balance Sheet 2013 2012
Assets
Cash $28.0 $27.0
Marketable securities 69.0 66.0
Accounts receivable 84.0 80.0
Inventories 112.0 106.0
Total current assets $293.0 $279.0
Net plant and equipment 281.0 265.0
Total assets $574.0 $544.0
Liabilities and Equity
Accounts payable $56.0 $52.0
Notes payable 138.0 130.0
Accruals 28.0 28.0
Total current liabilities $222.0 $210.0
Long-term bonds 173.0 164.0
Common stock 100.0 100.0
Retained earnings 79.0 70.0
Common equity $179.0 $170.0
Total liabilities and equity $574.0 $544.0

Use the income statements and balance sheets above to calculate Garnet Inc.'s free cash flow for 2013. Round your answer to the n

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