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6 . ' 7 . 8 . 9 . 1 0 . Shrives Publishing recently reported $ 1 1 , 5 0 0 of sales,

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Shrives Publishing recently reported $11,500 of sales, $5,500 of operating costs other than depreciation, and $1,250 of depreciation. The company had $3,500 of bonds that carry a 6.25% interest rate, and its federal-plus-state income tax rate was 25%. During the year, the firm had expenditures on fixed assets and net operating working capital that totaled $1,550. These expenditures were necessary for it to sustain operations and generate future sales and cash flows. What was its free cash flow?
a. $4,812,50
b. $4,450,00
c. $3,262.50
d. $2,012.50
e. $6,362.50
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