### How much free cash flow did wells generate

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Wells Water Systems recently reported \$8,250 of sales, \$4,500 of operating costs other than depreciation, and \$950 of depreciation. The company had no amortization charges, it had \$3,250 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 sales and cash flows in the future, the firm was required to spend \$750 to buy new fixed assets and to invest \$250 in net operating working capital. How much free cash flow did Wells generate?

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