Lane Robertson, CFO of Carter Electric, was asked by the CEO…
Lane Robertson, CFO of Carter Electric, was asked by the CEO to do an estimate of the firm’s Free Cash Flow for FY2022. After some analysis Lane developed the following data: the tax loss carry forward into FY2022 will be -$1,280,000; the EBIT is projected to be $2,750,000 (profit); the tax rate will be 21%; and the estimated depreciation and amortization expense for FY2022 will be $622,000. For FY2022 working capital is expected to decrease by $150,000; and the expected capital expenditures for FY2022 will be $566,000. The firm will not be raising any capital nor distributing any earning in FY2022. Using the method explained to him 10 years earlier by his college professor, Dr. Jayaraman, and the data he developed, his projection of Free Cash Flow should be ____________. Round your answer to the nearest $1000.