Use the table for the$$ question$($s$)$ below.

Pro Forma Income Statement for$$ Ideko, $2005$minus$2010$

Year

$2005$

$2006$

$2007$

$2008$

$2009$

$2010$

Income Statement$($$ $000)$

$1$ Sales

$75,000$

$88,358$

$103,234$

$119,777$

$138,149$

$158,526$

$2$ Cost of Goods Sold

$3$ Raw Materials

$(16,000)$

$(18,665)$

$(21,593)$

$(24,808)$

$(28,333)$

$(32,193)$

$4$ Direct Labor Costs

$(18,000)$

$(21,622)$

$(25,757)$

$(30,471)$

$(35,834)$

$(41,925)$

$5$ Gross Profit

$41,000$

$48,071$

$55,883$

$64,498$

$73,982$

$84,407$

$6$ Sales and Marketing

$(11,250)$

$(14,579)$

$(18,582)$

$(23,356)$

$(27,630)$

$(31,705)$

$7$ Administrative

$(13,500)$

$(13,254)$

$(15,485)$

$(16,769)$

$(17,959)$

$(20,608)$

$8$ EBITDA

$16,250$

$20,238$

$21,816$

$24,373$

$28,393$

$32,094$

$9$ Depreciation

$(5,500)$

$(5,450)$

$(5,405)$

$(6,865)$

$(7,678)$

$(7,710)$

$10$ EBIT

$10,750$

$14,788$

$16,411$

$17,508$

$20,715$

$24,383$

$11$ Interest Expense$($net$)$

$(75)$

$(6,800)$

$(6,800)$

$(6,800)$

$(7,820)$

$(8,160)$

$12$ Preminustax Income

$10,675$

$7988$

$9611$

$10,708$

$12,895$

$16,223$

$13$ Income Tax

$(3,736)$

$(2,796)$

$(3,364)$

$(3,748)$

$(4,513)$

$(5,678)$

$14$ Net Income

$6,939$

$5,193$

$6,247$

$6,960$

$8,382$

$10,545$

Year

$2006$

$2007$

$2008$

$2009$

$2010$

Increases in NWC

$2,250$

$3,000$

$3,250$

$3,600$

$4,000$

Capital Expenditures

$5,000$

$5,000$

$20,000$

$15,000$

$8,000$

Net Borrowing

$0$

$0$

$15,000$

$5000$

$0$

The free cash flow to equity$($in $000\text{'}$s$)$ in $2008$ is closest$$ to: