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REVIEW FOR FINAL Please explain in detail why the answer is E and how it is found Shrives Publishing recently reported $10, 750 of sales,
REVIEW FOR FINAL
Please explain in detail why the answer is E and how it is found
Shrives Publishing recently reported $10, 750 of sales, $5, 500 of operating costs other than depreciation, and $1, 250 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 35%. During the year, the firm had expenditures on fixed assets and net operating working capital that totaled $1, 550. These expenditures were necessary for it to sustain operations and generate future sales and cash flows. What was its free cash flow? $1, 873 $1, 972 $2, 076 $2, 185 $2, 300Step by Step Solution
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