Spongebob and his good friend Patrick Star want to open a bubble stand. Spongebob and Patrick, short of capital, ask Mr. Krabs if he is interested in investing in the bubble stand. Mr. Krabs lent the bubble stand $5,000 at interest rate of 10%, interest paid annually. Spongebob purchased a new bubble stand for $5,000, five year useful life, and invests in inventory (bubbles and wands) of $1,000. They maintain an inventory of $1,000 at all times. The bubble stand had an outstanding first year with sales of $15,000. In addition, the bubble stand had a gross margin of 50%, general and administrative expenses were $2,500, and marketing is 10% of sales. The bubble stand paid dividends of $500 to both Spongebob and Patrick. The firms tax rate is 30%. a. What are earnings before interest and taxes? b. What is net income? c. What is cash flow from operations? d. What is free cash flow?