Exhibit 10 During 2004 Nelson Corp

Exhibit 10.7
Use the Information Below for the Following Problem(S)
You are provided with the following information for the Nelson Corporation.
\begin{array}{lrr}\begin{array}{l}\\\text{Net Income}\\\text{Depreciation}\\\text{Total Current Assets}\\\text{Total Current Liabilities}\\\end{array}\\begin{array}{r}2003 \\\hline \$ 1500 \\\$ \quad 200 \\\$ \quad 700 \\\$ \quad 500\end{array}\\begin{array}{r}\text { 2004 } \\\hline\$2000 \\\$ \quad 475 \\\$ \quad 900 \\\$ \quad 800\end{array}\\end{array}
During 2004 Nelson Corp. made capital expenditures totaling $500 and disposed property worth $800.
-Refer to Exhibit 10.7.The firm's free cash flow is

A) $2200
B) $1900
C) $2875
D) $2325
E) $2575