The following is an income statement for 70"s Company 2017 year:

Revenues 5,000,000

COGS (3,600,000)

Gross Profit 1,400,000

Selling Expense (35,000)

Depreciation Expense (45,000)

General Expense (40,000)

Administrative expense (15,000)

Operating Income EBIT 1,265,000

Interest Expense (20,000)

Taxes 40% (498,000)

Net Income 747,000

Capital Expenditures for 2017 were 350,000

Increase in Net Working Capital was 30,000

-What is the 70"s Company's Free Cash Flow for 2017? P.S formula= Operating income (1-0.40)+ Depreciation- Captial Expenditures +/- Change in Net Working Capital

-How would explain FCF to your CEO?

-How would evaluate the quality of the FCF's? Good? Bad?

-What factors would you consider in the evaluation?

-How would you suggest to improve FCF's?

Please answer bolded questions!