ABC Inc, recently reported $150,000 of sales, $20,000 of depreciation, and $80,000 of operating costs other than depreciation. The company had $20,000 of outstanding bonds that carry a 8.5% interest rate, and its federal-plus-state income tax rate was 40%. How much was the firm's net income? The firm uses the same depreciation expense for tax and stockholder reporting purposes. Select one: a. $30,250 b. $28,980 c. $31,820 d. $32,140 ABC Company recently reported $200,000 of sales, $150,000 of operating costs other than depreciation, and $9,000 of depreciation. The company had $30,000 of outstanding bonds that carry a 8% interest rate, and its federal-plus-state income tax rate was 40%. In order to sustain its operations and thus generate future sales and cash flows, the firm was required to spend $25,000 to buy new fixed assets and to invest $5,000 in net operating working capital. What was the firm's free cash flow? Select one: a. $24,600 b. $3,600 c. $8,600 d. $33,600