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Wells Water System recently reported $8,250 of sal...




Wells Water System 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 oustanding bonds that carry a 6.74% interest rate, and its federal-plus-state income tax rate was 35%. I 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?


Paper#11912 | Written in 18-Jul-2015

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