Free cash flows from an asset perspective:

Operating income (EBIT) $ 17,000

Depreciation 10,000

EBITDA $ 27,000

Tax expense $ 5.450

Less change in tax payable -

Cash taxes $ 5.450

After-tax cash flows from operations $ 21.550

Change in net working capital

Change in current assets:

Change in cash $ (8,500)

Change in accounts receivable 3,500

Change in inventory 16,500

Change in current assets $ 11.500

Change in noninterest-bearing current debt:

Change in accounts payable $ 11.500

Change in net operating working capital $ (23,000)

Change in long-term assets:

Purchase of fixed assets (30,000)

Free cash flows - asset perspective $ 21.497

Free cash flows from a financing perspective:

Interest expense $ (6.100)

Less change in interest payable -

Interest paid to lenders (6,100)

increase in long-term debt (mortgage payable) 40,000

Common stock dividends paid to owners

(3.650)/

Financing free cash flows

14,000