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Greshak Enterprises recently reported $10,450 of sales, $5,800 of operating costs other than depreciation, and $875 of depreciation. The company had no amortization charges, it

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Greshak Enterprises recently reported $10,450 of sales, $5,800 of operating costs other than depreciation, and $875 of depreciation. The company had no amortization charges, it had $6,000 of outstanding bonds that carry a 5.0% 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 spend $985 to buy new fixed assets and to invest $400 in net operating working capital. How much free cash flow did Greshak generate? Select one: A. $2,321 B. $1,446 C. $1,961 D. $2,051 E. $3,121

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