E10.2. Calculation of Free Cash Flow from the Balance Sheet and Income Statement (Easy) A firm reported comprehensive income of $376 million for 2009, consisting of $500 mil- lion in operating income (after tax) less $124 million of net financial expense (after tax). It also reported the following comparative balance sheet (in millions of dollars): Balance Sheet 2009 2008 2009 2008 Operating cash 60 50 Short-term investments (at market) 550 500 Accounts payable Accrued liabilities 1,200 1,040 390 450 Accounts receivable 940 790 Long-term debt 1,840 1,970 Inventory 910 840 Property and plant 2.840 2,710 Common equity 1,870 1,430 5,300 4,890 5,300 4,890 Calculate free cash flow using Method I and Method 2.