Net income and free cash flow

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Reference no: EM13141652

Pd member- Bar System reported $9,250 of sales, $5750 of operating costs other than depreciation, and $700 of depreciation. The company had no amortization charges, it had $3200 of outstanding bonds that carry 5% interest rate, federal-plus state income tax rate was 35%. In order to sustain operations and generate sales and cash flow, the firm required to make $1250 of capital expenditures on new fixed assets and to invest $300 in net operating working capital. By how much did the firm's net income exceed its free cash flow?

$673.27, $708.70 , $746.00, $783.30, $822.47

Reference no: EM13141652

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