Question
Andrews Industries recently reported $410,000 of sales, $246,000 of operating costs other than depreciation, and $11,228 of depreciation.The company had no amortization charges, its interest
Andrews Industries recently reported $410,000 of sales, $246,000 of operating costs other than depreciation, and $11,228 of depreciation.The company had no amortization charges, its interest expense was $13,176, and its federal-plus-state income tax rate was 25%.To sustain its operations and thus generate sales and cash flows in the future, the firm was required to make $20,275 of capital expenditures on new fixed assets and to invest $6,175 in net operating working capital. What is the firm's free cash flow?
a.$82,346
b.$88,129
c.$94,304
d.$99,357
e.$105,332
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