In the Berkshire Partners Bidding for Carters case study, how do I calculate the Free Cash flow from the Historical Financial Data and Management Projections exhibits?

Exhibit 4 Carter's Historical Financial Data (in thousands of dollars) Six Months Ended Six Months June 30, Ended June 1996 1997 1998 1999 2000 2000 30, 2001 Wholesale sales 188.991 219.535 236,486 231,284 256.094 105,300 123,655 Retail sales 129,244 143,419 171,696 183,312 215,280 88,374 97,370 Total net sales 318,235 362,954 408,182 414,596 471,374 193,674 221,025 Cost of goods sold 200,798 227,332 256,482 271,844 293,340 121,521 140,996 Gross profit 117,437 135,622 151,700 142,752 178,034 72,153 80,029 Selling, general and administrative 96,905 112,531 124,278 120,773 137,513 62,729 68,827 Nonrecurring charges 8,834 0 0 7,124 0 0 4,272 Operating income 11,698 23,091 27,422 14,855 40,521 9,424 6,930 Interest income 0 0 0 0 -303 0 -68 Interest expense 9,706 17,571 18,525 17,748 16,294 7,919 7,907 Earnings before income taxes 1,992 5,520 8,897 -2,893 24,530 1,505 -909 Provision for income taxes 2,097 2,429 3,616 -869 9,731 607 -364 Extraordinary items, net of tax 2,351 0 0 0 354 354 0 Net Income -2,456 3,091 5,281 -2,024 14,445 544 -545 Other Data: EBITDA 29,558 36,926 43,021 38,834 58,041 17,526 20,627 Capital expenditures 7,756 18,625 22,262 8,957 20,185 5,908 3,549 Working capital, net 70,792 87,482 99,480 81,508 84,336 93,550 81,470 Property, plant & equipment, net 48,221 53,011 59,674 51,776 54,441 49,483 48,565 Depreciation and amortization 9.026 13,835 15,599 16,855 17,520 8,102 9,425 Total debt 145,000 157,100 167,600 142,300 141,400 156,250 156,700 Redeemable preferred stock 18,234 18,462 18,682 18,902 19,116 19,016 19,236 Common stockholders' equity 57,488 56,721 58,739 53,615 65,397 52,832 63,525 Exhibit 7a Summary of Management Projections (in thousands of dollars) 2001E 2002P 2003P 2004P 2005P 2006P Net Sales 537,300 618,800 711,600 817,300 938,800 985,740 % growth 13.8% 15.2% 15.0% 14.9% 14.9% 5.0% Gross Profit 221,900 260,900 302,400 348,300 400,400 420,420 Margin 41.3% 42.2% 42.5% 42.6% 42.7% 42.7% SG&A 146,800 172,200 193,300 214, 100 238,800 250,740 % of sales 27.3% 27.8% 27.2% 26.2% 25.4% 25.4% EBITDA 75, 100 88,700 109, 100 134,200 161,600 169,680 % of sales 14.0% 14.3% 15.3% 16.4% 17.2% 17.2% EBIT 55, 100 67,600 87,300 109,800 133,500 140, 175 % of sales 10.3% 10.9% 12.3% 13.4% 14.2% 14.2% Capex 20,500 19,500 21,000 21,500 22,500 22,500 % of sales 3.8% 3.2% 3.0% 2.6% 2.4% 2.3%