Olmstead Co. recently reported $207,500 of sales, $140,500 of operating costs other than depreciation, and $9,250 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 35%. 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 reduce investment in net operating working capital by $6,850. What was the firm's free cash flow? 24,688 (B) 38,388 (C) 39,256 26,656 41,750