2. Alarm. Co recently reported $15.000 of sales, $5.500 of operating costs other than depreciation, and $1,250 of depreciation. The company had $3,500 of bonds that carry a 6.25% interest rate, and its federal- plus-state income tax rate was 35%. During the year. the firm had expenditures on fixed assets and net working capital that totaled $1.550. These expenditures were necessary for it to sustain operations and generate future sales and cash flows. What was its free cash flow? $5,063 $1,873 $1,972 $2,076

2. Alarm. Co recently reported $15.000 of sales, $5.500 of operating costs other than depreciation, and $1,250 of depreciation. The company had $3,500 of bonds that carry a 6.25% interest rate, and its federal- plus-state income tax rate was 35%. During the year. the firm had expenditures on fixed assets and net working capital that totaled $1.550. These expenditures were necessary for it to sustain operations and generate future sales and cash flows. What was its free cash flow? $5,063 $1,873 $1,972 $2,076

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 4P: Talbot Enterprises recently reported an EBITDA of $8 million and net income of $2.4 million. It had...

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