Presented below is the Statement of Cash Flows for Eva Originals Clothing Company: Eva Originals Clothing Company Statement of Cash Flows For Year Ended December 31, 2016 Cash flows from operating activities Received from sales to customers $1,000,000 Interest income received 20,000 Payment for inventory (160.000) Payment to employees _(120,000 Net increase from operating activities $ 740,000 Cash flows from investing activities: Payment for stock of another company (100,000) Payment for purchase of equipment _(400,000 Net decrease from investing activities $(500,000) Cash flows from financing activities: Received from loans from bank $ 100,000 From issuance of common stock 300,000 From issuance of bonds 200,000 Payment of dividends _(40.000 Net increase from financing activities $ 560,000 Net increase in cash $ 800.000 From issuance of bonds 200,000 Payment of dividends (40.000 Net increase from financing activities $ 560.000 Net increase in cash $ 800,000 Determine the company's free cash flow: ($300,000) $240,000 $360,000 $340,000