JCB Inc. recently reported $8.0 million in sales, $5.80 million of operating costs other than depreciation, and $400,000 of depreciation. The company had no amortization charges, it had $3.50 million of outstanding bonds that carry a 4% 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 make $900,000 of capital expenditures on new fixed assets and to invest $200,000 in net operating working capital. By how much did the firm's net income exceed its free cash flow? $681.250 $752.500 $595,000 $812.275