necessary for it to sustain operations and generate future sales and cash flows. What was its free cash flow?\ a.

$5,062.50

\ b.

$6,062.50

\ c.

$9,362.50

\ d.

$8,300.00

\ e.

$7,712.50

Shrives Publishing recently reported $14,750 of sales, $4,800 of operating costs other than depreciation, and $1,000 of depreciation. The company had $3.500 of bonds that carry a 6.25% interest rate, and its federal-plus-state income tax rate was 25%. During the year, the firm had expenditures on fixed assets and net operating working capital that totaled $1,650. These expenditures were necessary for it to sustain operations and generate future sales and cash flows. What was its free cash flow? a. $5,062.50 b. $6,062.50 c. $9,362.50 d. $8,300.00 e. $7,712.50