Calculate free cash flow

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Question - The following summarizes the parts of a firm's cash flow statement that have to do with operating and investing activities (in millions):

Net income $2,198

Accruals in net income $3,072

Cash flow from operations Cash in investing activities: $5,270

Purchase of property and plant $2,203

Purchase of short-term investments $4,761

Sale of short-term investments ($547) $6,417

The firm made interest payments of $1,342 million and received $876 in interest receipts from I-bills that it held. The tax rate is 35 percent.

Required - Calculate free cash flow?

Reference no: EM132730447

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