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Business, 19.02.2021 01:00 alexabessin

Wells Water Systems recently reported $10,750 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 $750 to buy new fixed assets and to invest $250 in net operating working capital. How much free cash flow did Wells generate? Select the correct answer. a. $3,902.20 b. $3,909.80 c. $3,917.40 d. $3,925.00 e. $3,894.60

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