Shrives Publishing recently reported $14,750 of sales, $5,850 of operating costs other than depreciation, and $1,300 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 $1,500. These expenditures were necessary for it to sustain operations and generate future sales and cash flows. What was its free cash flow?

a. $7,400.00

b. $4,200.00

c. $7,000.00

d. $8,500.00

e. $5,500.00