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The Rick Sanchez Corp. recently reported $4,332,000 of sales, $2,740,500 of operating costs other than depreciation, and $350,990 of depreciation. The company had $735,000 of
The Rick Sanchez Corp. recently reported $4,332,000 of sales, $2,740,500 of operating costs other than depreciation, and $350,990 of depreciation. The company had $735,000 of outstanding bonds that carry a 7.95% interest rate, and its federal-plus-state income tax rate was 30%. In order to sustain its operations and thus generate future sales and cash flows, the firm was required to spend $1,500,000 to buy new fixed assets and to invest $24,800 in net operating working capital. What was the firm's free cash flow
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