Question
Greshak Corp. recently reported $18,350 of sales, $9,900 of operating costs other than depreciation, and $1,250 of depreciation. The company had no amortization changes it
Greshak Corp. recently reported $18,350 of sales, $9,900 of operating costs other than depreciation, and $1,250 of depreciation. The company had no amortization changes it had $4,500 of outstanding bonds that carry a 10.0% interest rate, and its federal-plus-state income tax rate was 30%. In order to sustain its operations and this generate sales and cash flows in the future, the firm was required to spend $2,850 to buy new fixed assets and to invest $1,625 in net operating working capital. How much free cash flow did Greshak generate?
$120.00
$415.00
$565.00
$710.00
$1,180.00
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