Your existing business generates $87,000 in EBIT. • The corporate tax rate applicable to your business is 25%. • The depreciation expense reported in the financial statements is $16,571. • You don’t need to spend any money for new equipment in your existing cafés; however, you do need $13,050 of additional cash. • You also need to purchase $6,960 in additional supplies—such as tableclothes and napkins, and more formal tableware—on credit. • It is also estimated that your accruals, including taxes and wages payable, will increase by $4,350.

Based on your evaluation you have ________ in free cash flow. Show your Calculations