1. You are considering adding a new division into your existing firm. This will entail an increase in inventory of $8006, an increase in accounts payables of $2281, and an increase in property, plant, and equipment of $40,000.

All other accounts will remain unchanged. The change in net working capital resulting from the addition of the new division is _______________.

Enter your answer in dollars and round to the nearest dollar.

2. Company XYZ, an all-equity firm, reported incremental revenues (net income) of $304 million for the most recent year. The firm had depreciation expenses of $110 million and capital expenditures of $197 million.

The company also had an increase in net working capital of $20 million. What is the free cash flow? Enter your answer in dollars and round to the nearest dollar.