A firm reported after-tax operating income of $1,298 million. Free cash flow of $234 million was...

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A firm reported after-tax operating income of $1,298 million. Free cash flow of $234 million was calculated from the cash flow statement.a. Identify the” hard” and” soft” components of the income.b. The free cash flow is after $687million in cash investments. What were the operating accruals for the year?View Solution:
A firm reported after tax operating income of 1 298 million Fr

Nitish Lath · Accepted Answer

Sheet1
	a	The hard part in income is free cash flows which is $234 million whereas the soft part is net income after tax- free cash flows i.e. $1,064 ($1298- $234).
	b	The cash accrual is $611 million i.e. ($1298- $687).

A firm reported after-tax operating income of $1,298 million. Free cash flow of $234 million was calculated from the cash flow statement.a. Identify the” hard” and” soft” components of the income.b....

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