Question: Use the following income statements & balance sheets to compute garnets Inc free cash flow for 2008.
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Garnet Inc
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2008
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2007
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income statement
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net sales
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$530
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500
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cost s
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40
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380
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depreciation
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30
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25
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total operating costs
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430
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405
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earning before interest and taxes
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100
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95
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less interest
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23
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21
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earning before taxes
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77
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74
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taxes(40%)
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30.8
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29.6
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net income
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46.2
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44.4
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balance sheet
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assets
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cash
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28
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27
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marketable securities
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69
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66
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accounts receivable
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81
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80
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inventories
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112
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106
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total current assets
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293
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279
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net plant and equipment
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281
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265
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total assets
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574
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544
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liabilities and equity
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accounts payable
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56
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52
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notes payable
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138
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130
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accruals
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28
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28
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total current liabilities
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222
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210
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long term bonds
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173
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164
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common stock
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100
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100
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retained earning
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79
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70
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common equity
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179
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170
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total liabilities and equity
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574
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544
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