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 ASSETS Cash Receivables current yr projected yr 400 600 900 1,125 Gross Profit yr 7,000 4.000 3,000 1,400 500 Sales (all credit) Cost of Goods 750 Sold Inventory Property, plant & equipment Total assets 2.200 2.750 Operating expenses 4,100 5,125 Depreciation 400 1,200 100 1,100 275 825 Operating income Interest expense LIABILITIES&EQUITY Accounts payables Accrued expenses Long-term debt Common stock Paid-in Capital Retained earnings Total liabilities and equity 500 400 1,400 600 200 625 Taxable income Taxes (25%) 500 1.750 750 250 1.0001.250 5,125 Net income 4,100