Tribal Networks recently reported $12,100 of sales, $7,500 of operating costs other than depreciation, and $800 of depreciation. The company had no amortization charges. It had $4,000 of outstanding bonds that carry a 7% 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 $400 to buy new fixed assets and to invest $900 in net operating working capital. How much free cash flow did the company generate? $1,550 $3,350 O $1,340 O $2,140 O $2,350

Tribal Networks recently reported $12,100 of sales, $7,500 of operating costs other than depreciation, and $800 of depreciation. The company had no amortization charges. It had $4,000 of outstanding bonds that carry a 7% 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 $400 to buy new fixed assets and to invest $900 in net operating working capital. How much free cash flow did the company generate? $1,550 $3,350 O $1,340 O $2,140 O $2,350

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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2
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