Question
Your firm purchases a machine for $50,000 You purchase the machine using current available cash-balances from a previous period. You have cash sales from your
Your firm purchases a machine for $50,000 You purchase the machine using current available cash-balances from a previous period. You have cash sales from your retail customers of $200,000 You have Credit (AR) sales from your retail customers of $30,000 Your Credit (AR) sales from commercial consumers are $20,000 You have cash sales from your commercial customers of $10,000 The cost of your overhead is $45,000 which you pay for with cash. You have variable costs of $17,000 which you pay for with credit. Your firm's tax rate is 21% Finally, you collect on past accounts receivable for $3,000 and pay off past accounts payable for $7,000
What is the firm's Free Cash Flow?
State your answer to the nearest dollar without the dollar sign or comma (e.g., 39000)
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