Below are summary numbers for 2020 and 2021 for S-Mart Ltd. (in million dollars). 2020 2021e Operating assets Cash equivalente Operating liabilitiese Long-term debt financinge Operating income (after tax) Net financial expense (after tax)<ª 17,000 400 19,000- 510 3,880 4,050 5,496e 4,374e 2,200 690

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 89E: Ratio Analysis Rising Stars Academy provided the following information on its 2019 balance sheet and...
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Below are summary numbers for 2020 and 2021 for S-Mart Ltd. (in million dollars).
2020-
2021
Operating assets
Cash equivalente
Operating liabilitiese
Long-term debt financinge
17,000-
400
3,880
4,374
19,000-
510
4,050
5,496e
Operating income (after tax)<
Net financial expense (after tax)<-
2,200e
690
Calculate S-Mart's free cash flow in 2021 using both Method 1 and Method 2.4
(Hint: Method 1 focuses on the source of free cash flow; Method 2 focuses on the disposition
of free cash flow.)-
Transcribed Image Text:Below are summary numbers for 2020 and 2021 for S-Mart Ltd. (in million dollars). 2020- 2021 Operating assets Cash equivalente Operating liabilitiese Long-term debt financinge 17,000- 400 3,880 4,374 19,000- 510 4,050 5,496e Operating income (after tax)< Net financial expense (after tax)<- 2,200e 690 Calculate S-Mart's free cash flow in 2021 using both Method 1 and Method 2.4 (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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