Question: Below are summary numbers from reformulate balance sheets for 2007 and 2006 for Kimberly-Clark Corporation, the paper products company, along with numbers from the reformulated

Below are summary numbers from reformulate balance sheets for 2007 and 2006 for Kimberly-Clark Corporation, the paper products company, along with numbers from the reformulated income statement for 2007 (in millions).

Below are summary numbers from reformulate balance sheets for 20

a. The net payout to shareholders (dividends and share repurchases minus share issues) in 2007 was $3,405.9 million. Calculate free cash flow using Method 1 and Method 2.
b. The firms reported cash flow from operations of $2,429 million in its 2007 cash flow statement and also reported net interest payments of $142.4 million. It reported $898 million in cash spent on investing activities, but this was after including a net $56 million from liquidating short-term interest-bearing securities. The firm's statutory tax rate is 36.6 percent. Calculate free cash flow from these reportednumbers.

2007 2006 Operating assets Operating liabilities Financial assets Financial obligations $18,057.0 6,011.8 382.7 6,496.4 2,740.1 147.1 $15,796.2 5,927.2 270.8 4,395.4 Operating income (atter tax) Net financial expense (after tax)

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