Wells Water Systems recently reported $8,250 of sales, $4,500 of operating costs other than depreciation, and $950 of depreciation. The company had no amortization charges, it had $3,250 of outstanding bonds that carry a 6.75% 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 $850 to buy new fixed assets and to invest $300 in net operating working capital. How much free cash flow did Wells generate?

Group of answer choices

$2,575.00

$1,625.00

$2,050.00

$1,900.00