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Finance 1 answer below » Watson Oil recently reported (in millions) $8,250 of sales, $5,750 of operating costs other than depreciation, and $650 of depreciation. The
company 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 future sales and cash flows, 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? View complete question » a. $836 Watson Oil recently reported (in millions) $8,250 of sales, $5,750 of operating costs other than depreciation, and $650 of depreciation. The
company 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 future sales and cash flows, 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. $836 b. $718 c. $756 d. $878 e. $796 View less » Jan 18 2014 04:46 AM
