Wells Water Systems Recently Reported $8,250 of Sales,$4,500 of Operating

Multiple Choice

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 35%.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?

A) $1,770.00
B) $1,858.50
C) $1,951.43
D) $2,049.00
E) $2,151.45