The following is a recent income statement for Hegel Publishing.
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Net sales
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$8,000
|
|
Cost of sales (including depreciation of $800)
|
4,700
|
|
Gross profit
|
3,300
|
|
Selling and admin. expenses (including interest expense of $570)
|
1,500
|
|
Income before tax
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1,800
|
|
Tax
|
612
|
|
Income after tax
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$1,188
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Calculate Hegel's free cash flow in this year assuming it spent $510 on new capital equipment and increased current assets net of non-interest- bearing current liabilities by $340.