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

Answer rating: 100% (QA)

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