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Cash Flows for Net Operating Assets

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A firm reported free cash flow of $430 million and operating income of $390 million.
a) By how much did its net operating assets change during the period?
b) The fir invested $29 million cash in new operating assets during the period. What were its operating accruals?
c) The firm incurred net financial expenses of $43 million after tax, paid dividend of $20 million, and raised $33 million from share issues. What was the change in its net debt position during the period?

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The expert examines the cash flows for net operating assets.

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Question A
Net operating assets change by an amount equal to the free cash flow, $430 million.

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