You must type in both the answer and all of your work to receive credit. Use the financial statements and additional data provided by management to calculate the firm's Free Cash Flow for the projected year. Tax rate = 35% Plans for the projected year will require $1,000 of new machinery and equipment Firm expects next year's dividend to be $260 Acme Products, Inc. Acme Products, Inc. Balance Sheets Income Statement projected ASSETS current yr yr projected yr Cash 400 500 Sales (all credit) 7,500 Receivables 600 750 Cost of Goods Sold 3,500 Inventory 900 1,125 Gross Profit 4,000 Property, plant & equipment 2,200 2,750 Operating expenses 1,400 Total assets 4,100 5,125 Depreciation 400 Operatting income 2,200 LIABILITIES & EQUITY Interest expense 100 Accounts payables 500 625 Taxable income 2,100 Accrued expenses 400 500 Taxes (25%) 525 Long-term debt 1,400 1,750 Net income 1,575 Common stock 600 750 Paid-in Capital 200 250 Retained earnings 1,000 1,250 Total liabilities and equity 4,100 5,125