Johnson Battery Systems Metals Recently Reported Ebit Of 1 500 Depreciation Of 1

Johnson Battery Systems Metals recently reported EBIT of $1,500, depreciation of $1,500 as well, and its federal-plus-state income tax rate was 40%.  In order to sustain its operations and thus generate sales and cash flows in the future, the firm was required to make $800 of capital expenditures on new fixed assets and to invest $500 in net operating working capital. What was its free cash flow?  

A.$1,000

B.$1,300

C.$1,200

D.$1,100

 

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