Shrives Publishing recently reported $13,750 of sales, $4,700 of operating costs other than depreciation, and $1,350 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. $4,125.00

b. $7,400.00

c. $8,775.00

d. $5,475.00

e. $7,125.00