How much free cash flow did was generate

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Problem 1: Wells water systems recently reported $8250 of sales and 950 of operating cost other than depreciation and $950 of depreciation. The company had no amortization charges it had $3250 of outstanding bond that carry a 6.75% interest rate, and it's federal plus state income tax rate was 35%. In order to sustain it's operation and those generate sales in cash flows in the future the firm was required to spend $250 to buy new fixed assets and to invest $250 and that's operating working capital. how much free cash flow did was generate?

A. 1880
B. 2270
C.2020
D. 1630
E. 1770

Reference no: EM132950033

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