Your firm purchases a machine for $40,000 . You purchase the machine using current available cash-balances from a previous period. You have sales from your retail customers of $900,000 .These customers pay with cash. Your sales from commercial consumers are $800,000 .These customers pay with credit. The cost of your overhead is $78,000 which you pay for with credit. You have variable costs of $60,000 which you pay for with cash. Your firm's tax rate is 15% Finally, you collect on past accounts receivable for $35,000 and pay off past accounts payable for $50,000

Question 1 25 pts Your firm purchases a machine for $40,000. You purchase the machine using current available cash-balances from a previous period You have sales from your retail customers of $900,000 .These customers pay with cash. Your sales from commercial consumers are $800,000 .These customers pay with credit. The cost of your overhead is $78,000 which you pay for with credit. You have variable costs of $60,000 which you pay for with cash. Your firm's tax rate is 15% Finally, you collect on past accounts receivable for $35,000 and pay off past accounts payable for $50,000 You have the following depreciation table Depreciation Percentage 0.33 0.45 0.15 0.07 $ Expense Year 1 Year 2 Year 3 Year 4 With this information, what is the free cash-flow in year 1? $592,680 $579,480 $1,316,840 $552,680