Use the following to answer the next two questions, O'Donnell Industries generated the following income statement over the past year:

 

Sales$36,000

Operating costs excluding depreciation23,400

EBITDA$12,600

Depreciation2,600

EBIT$10,000

Interest900

EBT$9,100

Taxes (25%)2,275

Net Income$6,825

Here is the firm's balance sheet at the beginning and end of the year:

ASSETSBeginning of the YearEnd of the Year

Excess cash **$165$2,680

Accounts receivable2,1605,288

Inventory2,7005,282

Total current assets$5,025$13,250

Gross property, plant, & equipment19,80022,800

Accumulated depreciation10,80013,400

Net property, plant, & equipment$9,000$9,400

Total assets$14,025$22,650

CLAIMS

Accounts payable$1,440$1,800

Notes payable1,6501,925

Total current liabilities$3,090$3,725

Long-term debt4,4504,950

Total stockholder's equity6,485 13,975

Total liabilities and equity$14,025$22,650

** All cash is treated as excess cash.

 

 1.How much free cash flow did the company generate over the past year?Assume that all cash is considered excess and not needed for operations. 

2.Assume that the company has no dividends, and that all its net income went towards retained earnings.How much new common stock did the company issue over the past year?