Response to the following problem:
The following information was available from selected financial statements of Paradise Hotels, Inc.:
Net income $2,400,000
Depreciation expense 320,000
Cash flows provided by operating activities 3,000,000
Dividends paid 575,000
Cash used to purchase and improve fixed assets 510,000
Interest expense 52,000
Cash used to repay bank loans 225,000
Assume that the present capacity of the hotel chain can be maintained by investing an amount equal to 150% of depreciation expense. Determine Paradise Hotel's free cash flow.