During 2015, NICO Corporation had EBIT of 100,000, a change in ...

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During 2015, NICO Corporation had EBIT of 100,000, a change in net fixed assets of 400,000, an increase in net current assets of 100,000, an increase in spontaneous current liabilities of 400,000, a depreciation expense of 50,000, and a tax rate
 
  of 30. Based on this information, NICO's free cash flow is ________.
  A) -630,000
  B) -50,000
  C) 650,000
  D) -30,000

Question 2

A firm issued 10,000 shares of no par-value common stock, receiving proceeds of 40 per share. The amount recorded is ________.
 
  A) 0 in the Common Stock account
  B) 0 in the Paid-in Capital in Excess of Par account
  C) 400,000 in the Common Stock account
  D) 400,000 in the Paid-in Capital in Excess of Par account

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Answer to Question 1

D

Answer to Question 2

C