E7.8. Accounting Relations for Kimberly-Clark Corporation (Medium) Below are summary numbers from reformulated balance sheets for 2007 and 2006 for Kimberly-Clark Corporation, the paper products company, along with numbers from the reformulated income statement for 2007 (in millions).

Operating assets Operating liabilities Financial assets Financial obligations Operating income (after tax) Net financial expense (after tax)

a. Calculate the following for 2007 and 2006: (i) Net operating assets. (ii) Net financial obligations. (ii) Shareholders' equity.

b. Calculate free cash flow for 2007. 2007 2006 $18,057.0 $16,796.2 6,011.8 5,927.2 382.7 270.8 6,495.4 4,395.4 2,740.1 147.1

c. Show that the accounting relation for change in net operating assets (equation 7.5 in the chapter) works for Kimberly-Clark

d. What was the net payment to shareholders (the net dividend) in 2007? Real World Connection Follow Kimberly-Clark through the continuing case at the end of each chapter. Also see Exercises 54.8, E6.14, E10.10, and E11.16, and Minicase M5.3.