Question: please explain Problem 3 For a hypothetical firm, earnings before interest and taxes (EBIT) for the three months ended in Jun. 2019 was $2Bi. Income

please explain Problem 3 For a hypothetical firm, earnings before interest and please explain

Problem 3 For a hypothetical firm, earnings before interest and taxes (EBIT) for the three months ended in Jun. 2019 was $2Bi. Income tax rate for this period was 25%. Depreciation in this period was of $100M. Changes in working capital amounted to $500M, while capital expenditures were $700M billion. What's the free cash flow for 1Q 2019? A) $0 B) $120M C) $350M D) $400M E) $780M

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