Question

Last year Harrington Inc. had $6 million in operating income (EBIT). Its depreciation expense was $1.5...

Last year Harrington Inc. had $6 million in operating income (EBIT). Its depreciation expense was $1.5 million and its interest expense was $1.25 million.  Its corporate tax rate is 25%. Harrington had $13 million in operating current assets, $3 million in accounts payable, $2 million in accruals, and $1 million in notes payable at year's end.   In addition, it had $12 million in net plant and equipment and no excess cash. The prior year, Harrington had $10 million in net plant and equipment and its net operating working capital requirement was $7 million. Given the information provide, what was Harrington's free cash flows (FCF) from the year that just ended? (Hint: Use your answer from previous questions as needed). Enter your answer without using the $ sign and using the  format 1,000,000 instead of 1 million.  Round to the nearest $.

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