2. Alarm. Co recently reported $15,000 of sales, $5,500 of operating costs other than depreciation, and...

 

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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?" O $5,063 $1,873 $1,972 $2,076 None of the above 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?" O $5,063 $1,873 $1,972 $2,076 None of the above

Answer rating: 100% (QA)

Answer Step by Step Explanation Less esiation darking Calculationn of free Corh Flo Date Page ... View the full answer