What was the firm free cash flow

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Reference no: EM132071854

Amex recently reported $190,000 of sales, $140,000 of operating costs other than depreciation, and $9,000 of depreciation. The company had $35,000 of outstanding bonds that carry a 6% 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 $16,000 to buy new fixed assets and to invest $6,000 in net operating working capital. What was the firm's free cash flow?

Reference no: EM132071854

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