Bartling energy system recently reported 9,250,000,000 of sales , $5,750,000,000 of operating costs other than depreciations , and 7000,000,000 of depreciation. Thecompany has no amortization charges, it had $3,200,000,000 of outstanding bonds that carry a 5% interest rate and its federal-plus-state income tax rate was 35%. Inorder to sustain its operations and thus generate sales and cash flows in the future, the firm was required to make $1,250,000,000 of capital expenditures on new fixedassets and to invest $300,000,000 in net operating working capital. By how much did the firm’s net income exceed its free cash flow?  

 

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