Question: Below is a pro forma income statement for the next year (year 1). Everything is in million $. Year 1 Revenue 120 Cost 70 EBITDA

Below is a pro forma income statement for the next year (year 1). Everything is in million $.

Year 1
Revenue 120
Cost 70
EBITDA 50
Depreciation 20
EBIT 30
Interest Expense 5
Pre-Tax Income 25
Income tax 5
Net Income 20

The company will not have any capital expenditures in year 1, but it will increase the level of NWC from $10 million (in year 0 ) to $13.1 million in year 1. The corporate tax rate is 20%.

What is the free cash flow in year 1? Write your answer in million dollars with 1 digit after the decimal point. For example, if the answer is $3.2 million, just write 3.2.

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