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Bartling Energy Systems recently reported $9,250 of sales, $5,750 of operating costs other than depreciation, and $800 of depreciation. The company had no amortization charges,

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Bartling Energy Systems recently reported $9,250 of sales, $5,750 of operating costs other than depreciation, and $800 of depreciation. The company had no amortization charges, it had $3,200 of outstanding bonds that carry a 7% interest rate, and its federal-plus-state income tax rate was 35%. 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? O a. $673.27 O b. $708.70 O c. $725.20 d. $746.00 O e. $579.40

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