Financial update as of June 15 Your existing business generates $135,000 in EBIT. The corporate tax...

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Financial update as of June 15 Your existing business generates $135,000 in EBIT. The corporate tax rate applicable to your business is 35%. The depreciation expense reported in the financial statements is $25,714. You don't need to spend any money for new equipment in your existing cafs; however, you do need $20,250 to increase current assets in the form of cash. As a strategic move, you decide to buy more supplies by credit to ensure that you don't run out. You purchase additional supplies worth $10,800. It is also estimated that your accruals will increase by $6,750. Based on your evaluation, you have $140,464 in free cash flow. Financial update as of June 15 Your existing business generates $135,000 in EBIT. The corporate tax rate applicable to your business is 35%. The depreciation expense reported in the financial statements is $25,714. You don't need to spend any money for new equipment in your existing cafs; however, you do need $20,250 to increase current assets in the form of cash. As a strategic move, you decide to buy more supplies by credit to ensure that you don't run out. You purchase additional supplies worth $10,800. It is also estimated that your accruals will increase by $6,750. Based on your evaluation, you have $140,464 in free cash flow.