24. Watson Oil recently reported (in millions) $8,250 of sales, $$,750 of operating costs other than depreciation, and $650 of depreciation. The company had $3.200 of outstanding bonds that carry a 5 interest rate, and its federal-p us state income tax rate was 35% In order to star its operations and thus generate future sales and cash flows, the firm was 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 firmi's net, income a. $718 b. $736 e $796 d $836 e. $878 25, Houston Pumps recently reported $185250 of sales, $140,500 of operating costs other than depreciation, and S9,250 of depreciation. The company had S35.250 of ouitstanding bonds that carry a 6.75% interest rate, and its federal-plus state income tax tate was 35 In order to sustain its operations and thus generate future sales and cash flows, the firm was required to spend $15.250 to buy new fixed assets and to invest $6,850 in net operating working capital. What was the firm's free cash flow? a. $10.225 b $10,736 c. $11,273 d $11,837 e $12,429