CLASSICAL. Write your answer in the space provided. Please show all your work to rece full credit Each part is worth 2 points. 30) The XYZ firm had $21.00 million in sales last year. Cost of goods sold was 10 depreciation expense was $2.90 million, interest payment on outstanding debt was $1.30 million and the firm's tax rate was 35%. The firm also made a 5 million capital expenditures. There was no change in working capital a) What was the firm's net income? b) What was the firm's free cash flow? How would net income and free cash flow change of depreciation was decreased by 300 million? What would be the impact on net income of depreciation was $1.20 million and interesten was $2.90 million was financed by only quity Expl Would the taxes paid increase or decrease of them