Quantitative Problem: Rosnan Industries' 2018 and 2017 balance sheets and income statements are shown below....

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Accounting

Quantitative Problem: Rosnan Industries' 2018 and 2017 balance sheets and income statements are shown below.

Balance Sheets
Assets 2018 2017
Cash and equivalents $100 $85
Accounts receivable 275 300
Inventories 375 250
Total current assets $750 $635
Net plant and equipment 2,300 1,490
Total assets $3,050 $2,125
Liabilities and Equity
Accounts payable $150 $85
Accruals 75 50
Notes payable 150 75
Total current liabilities $375 $210
Long-term debt 450 290
Total liabilities 825 500
Common stock 1,225 1,225
Retained earnings 1,000 400
Common equity 2,225 1,625
Total liabilities and equity $3,050 $2,125

Income Statements
2018 2017
Sales $3,100 $1,600
Operating costs excluding depreciation and amortization 1,250 1,000
EBITDA $1,850 $600
Depreciation and amortization 100 75
EBIT $1,750 $525
Interest 62 45
EBT $1,688 $480
Taxes (40%) 675 192
Net income $1,013 $288
Dividends paid $53 $48
Addition to retained earnings $600 $240
Shares outstanding 100 100
Price $25.00 $22.50
WACC 10.00%

The balance in the firm's cash and equivalents account is needed for operations and is not considered "excess" cash.

Using the financial statements given above, what is Rosnan's 2018 free cash flow (FCF)? Use a minus sign to indicate a negative FCF. Round your answer to the nearest dollar. $

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