Suppose you are the only owner of a chain of coffee shops near universities. Your current cafs are doing well, but you are interested in starting a fine dining restaurant. You decide to u the cash generated from your existing business to enter into a new business. Your accountant provides you with the following data on your current financial performance: Financial update as of June 15 Your existing business generates $75,000 in EBIT. The corporate tax rate applicable to your business is 35%. The depreciation expense reported in the financial statements is $14,286. You don't need to spend any money for new equipment in your existing cafs; however, you do need $11,250 of additional cash. You also need to purchase $6,000 in additional supplies-such as tableclothes and napkins, and more formal tableware-on credit. It is also estimated that your accruals, including taxes and wages payable, will increase by $3,750. Based on your evaluation, you have, Can a company have negative free cash flow? O Yes O No in free cash flow. The depreciation expense reported in the financial statements is $14,286. You don't need to spend any n $55,536 w equipment in your existing cafs; however, you do need You also need to purchase $6, $66,786 onal supplies-such as tableclothes and napkins, and more F It is also estimated that your a uding taxes and wages payable, will increase by $3,750. $100,536 Based on your evaluation, you have $93,036 in free cash flow.