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Houston Pumps recently reported $222,500 of sales, $121,000 of operating costs other than depreciation, and $11,500 of depreciation. The company had $35,250 of outstanding bonds

Houston Pumps recently reported $222,500 of sales, $121,000 of operating costs other than depreciation, and $11,500 of depreciation. The company had $35,250 of outstanding bonds that carry a 6.75% interest rate, and its federal-plus-state income tax rate was 25%. In order to sustain its operations and thus generate future sales and cash flows, the firm was required to spend $15,250 to buy new fixed assets and to invest $5,600 in net operating working capital. What was the firm's free cash flow?

a. $58,150.00
b. $73,400.00
c. $69,150.00
d. $63,750.00
e. $80,650.00

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