Suppose you are the only owner of a chain of coffee shops near universities. Your current cafes are doing well, but you are interested in starting a fine-dining restaurant. You decide to use 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 $99,000 in EBIT. The corporate tax rate applicable to your business is 35%. The depreciation expense reported in the financial statements is $18,857. You don't need to spend any money for new equipment in your existing cafes; however, you do need $14,850 of additional cash. You also need to purchase $7,920 in additional supplies-such as cloth tableclothes and napkins, and more formal tableware-on credit. It is also estimated that your accruals, including taxes and wages payable, will increase by $4,950. Based on your evaluation you have in free cash flow. $115,877 $132,707 $122,807 $73,307 Can a company have negative free Yes