Bartling Energy Systems recently reported $9,250 of sales, $5,750 of operating costs other than depreciation, and $700 o
Posted: Fri Jul 01, 2022 8:52 am
Bartling Energy Systems recently reported $9,250 of sales,$5,750 of operating costs other than depreciation, and $700 ofdepreciation. The company had no amortization charges, it had$3,200 of outstanding bonds that carry a 5% interest rate, and itsfederal-plus-state income tax rate was 25%. In order to sustain itsoperations and thus generate sales and cash flows in the future,the firm was required to make $1,250 of capital expenditures on newfixed assets and to invest $300 in net operating working capital.By how much did the firm's net income exceed its free cashflow?