Incorporated had $10,700 of sales, $5,500 of operating costs, and $1,300 of depreciation. The company had $3,500 of debt for which it pays 6.25% interest per year. Its total tax rate was 35%. During the same period, the firm spent $1,600 on required fixed assets and additional operating working capital. What was its free cash flow?

		$2,130.00
		$2,222.50
		$2,015.00
		$2,235.00
		$2,300.00

Question 2

Acme Incorporated had $10,700 of sales, $5,500 of operating costs, and $1,300 of depreciation. The company had $3,500 of debt for which it pays 6.25% interest per year. Its total tax rate was 35%. During the same period, the firm spent $1,600 on required fixed assets and additional operating working capital. What was its free cash flow?

		$2,130.00
		$2,222.50
		$2,015.00
		$2,235.00
		$2,300.00