Ingram Industries recently reported $150,000 of sales, $90,000 of operating costs other than depreciation, and $3,000 of depreciation. The company had no amortization charges, it had $50,000 of bonds that carry a 5% interest rate, and its federal-plus-state income tax rate was 40%. In order to sustain its operations and thus generate sales and cash flows in the future, the firm was required to make $10,000 of capital expenditures on new fixed assets and to invest $2,000 in net operating working capital. What is the firm's free cash flow?
a. $22,425
b. $25,200
c. $30,500
d. $32,700
e. $35,350