Bartling Energy Systems Recently Reported $9, 250 of Sales, $5

question 41

Multiple Choice

Bartling Energy Systems recently reported $9, 250 of sales, $5, 750 of operating costs other than depreciation, and $700 of depreciation.The company had no amortization charges, it had $3, 200 of outstanding bonds that carry a 5% interest rate, and its federal-plus-state income tax rate was 35%.In order to sustain its operations and thus generate sales and cash flows in the future, the firm was required to make $1, 250 of capital expenditures on new fixed assets and to invest $300 in net operating working capital.By how much did the firm's net income exceed its free cash flow?

• A) $673.27
• B) $708.70
• C) $746.00
• D) $783.30
• E) $822.47

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Definitions:

Mental Disorder

A broad category of conditions affecting mood, thinking, and behavior that impair an individual's ability to function in daily life.

Diagnosed

The process of identifying a disease or condition from its symptoms and diagnostic tests.

Cultural Background

The environment, traditions, values, and beliefs that influence an individual's identity and behaviors, shaped by the culture they grow up in or are a part of.

Schizophrenia

A psychological disorder characterized by extreme alterations in thought, in perceptions, and/or in consciousness that result in a break from reality.