Your garage based vinyl record business sold 2,000 records this year. Each record sold for $35. The cost of goods sold, including scoping out second-hand shops etc., was $23,000. Depreciation was $4,000. You paid interest of $5,400 on a loan that you took out to start up the business. The taxation rate is 32.50 percent. At the beginning of the year, current assets were $4,300 and current liabilities were $2,100. At the end of the year, current assets were $4,700 and current liabilities were $2,000. Your fixed assets were valued at $57,000 at the beginning of the year. At the end of the year, they are valued at $62,000. How much free cash flow did your business generate during the year?

a.

$26,991

b.

$25,077

c.

$24,400

d.

$23,525

e.

$25,280