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Year o Year 1 Year 2 Year 3 Year 4 Revenues 400,000 300,000 120,000 -60,000 400,000 -200,000 Costs of Goods Sold - 200,000 - 150,000
Year o Year 1 Year 2 Year 3 Year 4 Revenues 400,000 300,000 120,000 -60,000 400,000 -200,000 Costs of Goods Sold - 200,000 - 150,000 60,000 200,000 200,000 150.000 -6,000 -6,000 -6,000 -6,000 Gross Profit Selling, General and Admin CCA (depreciation) EBIT -42.000 -71,400 -34,986 12,000 -49,980 144,020 -50,407 109,014 Income tax 35% 122.600 -42.910 79.690 -4,200 -38,155 17.800 93,613 70,859 -280.000 Incremental Earnings Capital Purchases Changes to NWC (decrease) -5,000 -5,000 -5,000 -5.000 Compute the firm's Free Cash Flow in year 3. 0 148.593 584 690 $108 306 O $156,090
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