Calculate Free Cash Flow from a Cash Flow Statement (Easy)

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

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

Net income Accruals in net income Cash flow from operations $2,198 3,072 5,270 Cash in investing activities: Purchase of property and plant $2,203 Purchase of short-term investments 4,761 Sale of short-term investments (547) 6,417