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JCB Inc. recently reported $8.0 million in sales. $5.80 million of operating costs other than...

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Accounting

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JCB Inc. recently reported $8.0 million in sales. $5.80 million of operating costs other than depreciation, and $400,000 of depreciation. The company had no amortization charges, it had $3.0 million of outstanding bonds that carry a 4% interest rate, and its federal-plus-state income tax rate was 25%. In order to sustain its operations and thus generate sales and cash flows in the future, the firm was required to make $900,000 of capital expenditures on new fixed assets and to invest $200,000 in net operating working capital. By how much did the firm's net income exceed its free cash flow? O $812,275 $752.500 O $595,000 O $610,000

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