Using the pro forma financial statements, estimate the firm's FCF for 2016.

Given (refer to problem 6-12):
Pro forma Income Statement	2016
Sales	$ 36,000
Cost of Goods Sold	(24,000)
Gross Profit	$ 12,000
Operating Expenses	(9,600)
Net Operating income	$ 2,400
Interest Expense	(900)
Earnings before Taxes	$ 1,500
Taxes	(600)
Net Income	$ (900)
Balance Sheet	2016
Cash and Marketable Securities	$ 500
Accounts Receivable	7,200
Inventories	11,400
Current Assets	$ 19,100
Net Property Plant & Equipment (Note A)	18,400
Total	$ 37,500
Accounts Payable	$ 8,640
Short-term Debt	8,960
Current Liabilities	$ 17,600
Long-term Debt	7,000
Total Liabilities	$ 24,600
Total Owners' Equity	12,900
Total Liabilities and Owners' Equity	$ 37,500
Additional Short-term Debt Needed	$ 8,960
Solution:
Estimated Free Cash Flow	2016
EBIT
-Taxes
NOPAT
+ Depreciation and Amortization
- Increase in Operating Net Working Capital
- CapEx
= Free Cash Flow
Note A: Depreciation expense for 2016 =	$ 2,000