Assume no taxes and no new capital expenditures

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Last year your firm had revenue of $27.5 million, cost of goods sold (COGS) of $14.0 million, Selling, General, & Administration costs (SG&A) of $2.5 million, Account Receivables (AR) of $8.5 million, Account Payables (AP) of $7.0 million and Inventory of $5.5 million. What will be the free cash flow this year if you boost revenue 3.5% and AR 14.5%, while holding COGS growth to 3.0% and everything else remains the same as last year? Assume no taxes and no new capital expenditures. You are encouraged to use a spreadsheet even for this specific type of question.

Reference no: EM13810489

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