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Randell Corporations income statement for the year 2012 is given below: Sales $15,500,000 Operating costs excluding depreciation 7,500,000 EBITDA $ 8,000,000 Depreciation 1,000,000 EBIT $

Randell Corporations income statement for the year 2012 is given below:

Sales

$15,500,000

Operating costs excluding depreciation

7,500,000

EBITDA

$ 8,000,000

Depreciation

1,000,000

EBIT

$ 7,000,000

Interest

1,000,000

EBT

$ 6,000,000

Taxes (30%)

1,800,000

Net income

$ 4,200,000

Calculate Randells free cash flow for 2012 if it spent $2,400,000 on new fixed assets and net operating working capital increased by $300,000.

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