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Wells Water Systems recently reported $8,250 of sales, $4,500 of operating costs other than depreciation, and $950 of de
Posted: Thu May 05, 2022 7:39 pm
by answerhappygod
- Wells Water Systems Recently Reported 8 250 Of Sales 4 500 Of Operating Costs Other Than Depreciation And 950 Of De 1 (30.19 KiB) Viewed 46 times
Wells Water Systems recently reported $8,250 of sales, $4,500 of operating costs other than depreciation, and $950 of depreciation. The company had no amortization charges, it had $3,250 of outstanding bonds that carry a 6.75% interest rate, and its federal-plus-state income tax rate was 25%. In order to sustain its operations and thus generate sales and cash flows in the future, the firm was required to spend $750 to buy new fixed assets and to invest $250 in net operating working capital. How much free cash flow did Wells generate? O a. $2,152.50 O b. $2,491.79 O c. $2,260.13 O d. $2,373.13 Oe. $2,050.00