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CherriSweets recently reported $335,800 of sales, $100,600 of operating costs other than depreciation, and $15,322 of depreciation. The company had $635,250 of outstanding bonds that
CherriSweets recently reported $335,800 of sales, $100,600 of operating costs other than depreciation, and $15,322 of depreciation. The company had $635,250 of outstanding bonds that carry a 5.95% interest rate, and its federal-plus-state income tax rate was 30%. In order to sustain its operations and thus generate future sales and cash flows, the firm was required to spend $120,000 to buy new fixed assets and to invest $7,050 in net operating working capital. What was the firm's free cash flow? Please show your work.
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