ALI Company reported sales of $ 9,250 this year and operating expenses other than depreciation of $ 5,750 and depreciation expense of $ 700. The company does not recognize amortization costs, in addition it has outstanding bonds payable of $ 3,200 with an interest rate of 5% per annum. The tax imposed by the government on company profits is 35%. In order to be able to sustain its business and generate income and cash flow in the future, the company needs an investment of $ 1,250 to purchase new fixed assets such as machinery and equipment and requires a working capital of $ 300 operating.

Question

How much is the company's profit (net income) and the amount of free cash flow? Make calculations with the steps and explanations!