The recent improvements of your product created a lot of diversification opportunities. The manufacturing head decided to launch a new product range, which will increase the operating profit by $250,000 with an additional depreciation cost of $75,000. The management accountant provides the upcoming years (year 1) changes as follows.

Calculate the free cash flow for year 1?

With project 18,000 With out project 27,000 Inventory Payable 45,000 66,000 Receivable 65,000 42,000