Below are summary numbers for 2020 and 2021 for S-Mart Ltd. (in million dollars). ...

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Finance

Below are summary numbers for 2020 and 2021 for S-Mart Ltd. (in million dollars).

2020

2021

Operating assets

17,000

19,000

Cash equivalent

400

510

Operating liabilities

3,880

4,050

Long-term debt financing

4,374

5,496

Operating income (after tax)

2,200

Net financial expense (after tax)

690

Calculate S-Marts free cash flow in 2021 using both Method 1 and Method 2.

(Hint: Method 1 focuses on the source of free cash flow; Method 2 focuses on the disposition of free cash flow.)

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