How much is the expected free cash flow of the company

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Question - A company makes profits after tax of $100,000. Depreciation charges for non-current assets are $20,000. It is expected that next year $21,000 will be spent on essential replacement of equipment. It is also expected that working capital (inventory plus account receivables minus account payables) will be $30,000. The working capital at the end of the last reporting period was $32,000. How much is the expected free cash flow of the company?

 a. 69,000

 b. 101,000

 c. 129,000

 d. 97,000

Reference no: EM133024796

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