Watson Oil recently reported (in millions) $8,250 of sales, $5,750 of operating costs other than depreciation, and $625 of depreciation. The company had $3,200 of outstanding bonds that carry a 5% 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 $1,350 of capital expenditures on new fixed assets and to invest $400 in net operating vorking capital. By how much did the firm's net income exceed its free cash flow? a. $696.25 million b. $1,005,00 million c. $536.25 million d. $605.00 million e. $345.00 miltion