Assignment One 1. Check the slides example that we borrow from Ross et al text book, what is the Free cash flow of the firm? U.S. COMPOSITE CORPORATION Income Statement 2015 (\$ in millions) Total operating revenues Cost of goods sold Selling, general, and administrative expenses Depreciation Operating income Other income Earnings before interest and taxes (EBIT) Interest expense Pretax income Taxes Current: $71 Deferred: 13 Net income Addition to retained earnings: Dividends: \begin{tabular}{l} \hline$86 \\ \hline$43 \end{tabular} 43