The firm recently reported $40,000 of sales, $10,000 of operating costs other than depreciation, $3,000 of depreciation and amortization charges. The firm has $18,000 of outstanding bonds that carry an 10% 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 spend $12,500 to buy new fixed assets and to invest $5,500 in net operating working capital.

a. How much free cash flow did Wells generate?