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Please use the following balance sheets and income statements to solve this problem (all numbers in Million USD) Ariba Company 2018 2017 Net Sales and

Please use the following balance sheets and income statements to solve this problem (all numbers in Million USD)

Ariba Company

2018

2017

Net Sales and Revenues

2018

2017

Cash and cash equivalents

$3,000.

$ 3,000.

Net Sales

26,000.

28,000.

Marketable securities

$ 350.

$ 230.

Cost of sales

18,000.

20,000.

Account receivables

$25,000

$28,000.

Research and dev expenses

1,000.

1,000.

Other receivables

$1,000.

$ 900.

Selling expenses

2,000.

2,000.

Inventories

$ 3,000.

$ 3,000.0

Interest expense

760.

680.

Prepaid expenses

$ 5,000.

$ 4,000.

Non-operating expenses

1000.

960.

Property & equipment - net

$11,000.

$10,000.

Total

24,000

26,000.

Goodwill

$ 800.7

$ 700.0

Income before Income Taxes

2,000.

2,000.

Intangible assets - net

$ 4,000.1

$ 4,000.

Provision for income taxes

700.

800.

Total Assets

$57,000.

$57,000.

Income of Consolidated Group

1,000.

1,00.

LIABILITIES

Short-term borrowings

$6,000.2

$ 8,000.

Account payables

$5,000.1

$ 4,000.

Accrued expenses

7,000.1

$ 7,000.

Deferred revenues

$ 160.0

$ 160

Long-term borrowings

$21,000.

$23,000.

Other liabilities

$ 8,000.5

$ 6,000.

Total liabilities

$50,000.

$51,000.

STOCKHOLDERS' EQUITY

Common stock

$2,000.

$ 2,000

Treasury stock

(15,000.)

(15,000.)

Retained earnings

$23,000.

$23,000.

Comprehensive income/loss

(5,000.0)

(4,000)

Total stockholders' equity

$ 6,000

$ 6,000

Calculate Aribas Free Cash Flow during 2018 and explain the meaning of the free cash flow you have calculated to Aribias investors.

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