Question 10 pts JCB Inc. recently reported $10.0 million in sales, $6.80 million of operating costs other then depreciation, and $600,000 of depreciation. The company had no amortization charges, it had $5.50 million of outstanding bonds that carry a 6% 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 $1.30 million of capital expenditures on new fixed assets and to invest $300,000 in net operating working capital. By how much did the firm's net income exceed its free cash flow? $835,000 $752,500 $542.50 $681.25