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Bartling Energy Systems recently reported $ 9 , 2 5 0 of sales, $ 5 , 7 5 0 of operating costs other than depreciation,

Bartling Energy Systems recently reported $9,250 of sales, $5,750 of operating costs other than depreciation, and $775 of depreciation. The company had no amortization charges, it had $3,200 of outstanding bonds that carry a 5% interest rate, and its federal-plus-state income tax rate was 25%. In order to sustain its operations and thus generate sales and cash flows in the future, the firm was required to make $1,250 of capital expenditures on new fixed assets and to invest $300 in net operating working capital. By how much did the firm's net income exceed its free cash flow?
Select the correct answer.
a. $650
b. $646
c. $641
d. $655
e. $660

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