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Johnson Battery Systems Metals recently reported EBIT of $1,500, depreciation of $1,500 as well, and its federal-plus-state income tax rate was 40%.In order to sustain
Johnson Battery Systems Metals recently reported EBIT of $1,500, depreciation of $1,500 as well, and its federal-plus-state income tax rate was 40%.In order to sustain its operations and thus generate sales and cash flows in the future, the firm was required to make $800 of capital expenditures on new fixed assets and to invest $500 in net operating working capital.What was itsfree cash flow?
A.$1,000
B.$1,300
C.$1,200
D.$1,100
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