Watson Oil recently reported $($in millions$)$ $$10,250$ of sales, $$7,750$ of

operating costs other than depreciation, and $$850$ of depreciation. The

company had $$4,200$ of outstanding bonds that carry a $6\%$ interest rate,

and its federal$-$plus$-$state income tax rate was $25\%.$ In order to sustain

its operations and thus generate future sales and cash flows, the firm

was required to make $$1,250$ of capital expenditures on new fixed

assets and to invest $$300$ in net operating working capital. By how

much did the firm's net income exceed its free cash flow?

Hint: Use the FCF formula given in the textbook:

Expenditures $+$ Change in NOWC$)$