1.

Below is a (partial) copy of Eureka Computing's most recent income statement and balance sheet (all numbers in millions):

Income Statement
	Current Year
Sales	2341
COGS	1086
SG&A	287
Depreciation	261
Interest Expense	131
Tax Rate	25%

Balance Sheet
		Current Year		Prior Year
Assets
Cash		631		550
A/R		1228		1124
Inventory		870		860
Net PP&E		1022		800
Liabilities
A/P	644		614
Bonds Payable	1170		1010

What was Eureka Computing's free cash flows?

(Enter your answer in millions. i.e. 5.5 million, not 5,500,000)

2. General Motors is considering creating a new hybrid pickup truck. Which of the following items should be considered in a free cash flow analysis of this new model? (Select all that apply)

		The cost of retooling a factory to build the new trucks
		Sales of the new truck
		The cost of the marketing study that was already completed that showed demand for a hybrid pickup truck
		Decrease in sales of other GM trucks as customers switch to the new model
		Interest paid to bondholders from bonds issued to finance the new truck model