With no corresponding increase in current liabilities

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Provo Corporation had cash revenues of $13,000,000, cash operating expenses of $5,000,000, and depreciation and amortization of $1,000,000 during 2015. The firm purchased $600,000 of equipment during the year while increasing its inventory by $300,000 (with no corresponding increase in current liabilities). The corporate income tax rate for Provo is 40 percent. What is Provo's free cash flow for 2015?

Reference no: EM131178010

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