Question (13 marks)

Below are summary numbers for 2018 and 2019 for Apex Ltd. (in million dollars).

2019

2018

Operating assets

18,057.0

16,796.2

Operating liabilities

6,011.8

5,927.2

Financial assets

382.7

270.8

Financial liabilities

6,496.4

4,395.4

Operating income (after tax)

2,740.1

Net financial expense (after tax)

147.1

Required:

Calculate Apex's free cash flow in 2019 using both Method 1 and Method 2.

(Hint:Method 1 focuses on the source of free cash flow; Method 2 focuses on the disposition of free cash flow)