What was the firm free cash flow

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Reference no: EM131341736

Everest Inc. recently reported $202,500 of sales, $145,200 of operating costs other than depreciation, and $9,775.00 of depreciation. The company had $35,250 of outstanding bonds that carry a 6.75% interest rate, and its federal-plus-state income tax rate was 30%. In order to sustain its operations and thus generate future sales and cash flows, the firm was required to spend $14,340.00 to buy new fixed assets and to invest $7,435.00 in net operating working capital. What was the firm's free cash flow? Note: EBIT = Sales revenue-Oprating cost- depreciation.

Reference no: EM131341736

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