Q1) The financial statements for ACME Corporation is given below, determine the company's free cash flow for 2004?
Income Statement Balance Sheet

Year Ended 12/31/04 12/31/04 12/31/03
Sales $1,500,000 Current Assets $50,000 $35,000
Cost of Goods Sold 700,000 (Gross Fixed Assets 1,100,000 750,000)
Operating Expenses 400,000 Net Fixed Assets $450,000 $300,000
Depreciation 200,000 Total Assets $500,000 $335,000
EBIT 200,000 Current Liabilities $25,000 $30,000
Interest Expense 50,000 Long-term Debt 340,000 230,000
EBT 150,000 Common Stock 5,000 5,000
Taxes 45,000 Retained Earnings 130,00070,000
Net Income $ 105,000 Total Liab & Equity $500,000 $335,000

a. -$15,000
b. $170,000
c. -$65,000
d. $185,000