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Use the financial statements and additional data provided by management to calculate the firm's Free Cash Flow for the projected year Tax rate = 25% Plans for the projected year will require $500 of new machinery and equipment Firm expects next year's dividend to be $260 Acme Products, Inc Acme Products, Inc Balance Sheets Income Statement projected projected yr ASSETS Cash Receivables current yr 400 600 900 2,200 4,100 500 Sales (all credit) 7,000 Cost of Goods 750 Sold 4.000 Inventory Property, plant & equipment Total assets 1,125 Gross Profit 2.750 Operating 5,125 Depreciation 3,000 1,400 400 expenses Operating income 1,200 100 1,100 275 825 LIABILITIES & EQUITY Accounts payables Accrued expenses Long-term debt Common stock Paid-in Capital Retained earnings Total liabilities and equity Interest expense 500 400 1,400 600 200 1,000 625 Taxable income 500 1,750 750 250 1.250 Taxes (25%) Net income 4,100 5,125