Question
GameStop recently reported $6,010.700 of sales, $3,545,200 of operating costs other than depreciation, and $1,117,700 of depreciation. The company had no amortization charges, it had
GameStop recently reported $6,010.700 of sales, $3,545,200 of operating costs other than depreciation, and $1,117,700 of depreciation. The company had no amortization charges, it had $26,900 of outstanding bonds that carry a 6.75% interest rate, and its federal-plus-state income tax rate was 35.66%. In order to sustain its operations and thus generate sales and cash flows in the future, the firm was required to spend $113.100 to buy new fixed assets and to invest $888.000 in net operating working capital. How much free cash flow did GameStop generate?
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