Houston Pumps Recently Reported $222,500 of Sales,$140,500 of Operating Costs

question 70

Multiple Choice

Houston Pumps recently reported $222,500 of sales,$140,500 of operating costs other than depreciation,and $9,250 of depreciation.The company had $35,250 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 future sales and cash flows,the firm was required to spend $15,250 to buy new fixed assets and to invest $6,850 in net operating working capital.What was the firm's free cash flow?

• A) $34,438
• B) $39,948
• C) $26,517
• D) $27,894
• E) $33,060

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Smartphone Market

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Indicators or information that guide economic agents in decision-making by reflecting changes in the economy or market conditions.

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Individuals or groups that purchase goods and services for personal use, not for manufacture or resale.

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The state or quality of being capable of producing desired results with a minimum expenditure of energy, time, money, or materials.