E 4.4: Calculate Free Cash Flow from a Cash Flow Statement The following summarizes the parts of a rm's cash ow statement that have to do with operating and investing activities (in millions): Net income $2,198 Accruals in net income m Cash ow from operation m Cash in investing activities: Purchase of property and plant $2,203 Purchase of short-term investments 4,761 Sale of short-term investments () gm The rm made interest payments of $1,342 million and received $876 in interest receipts from T- bills that it held. The tax rate is 35 percent. Calculate free cash ow