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Transform the following statement of cash flows into a statement of free cash flows. Keep an integer number for FCF each year.: CONSOLIDATED STATEMENT OF

Transform the following statement of cash flows into a statement of free cash flows. Keep an integer number for FCF each year.:

CONSOLIDATED STATEMENT OF CASH FLOWS (millions)

Operating activities

2011

2010

2009

Net income

$1,229

$1,240

$1,208

Depreciation and amortization

369

392

384

Deferred income taxes

84

266

-40

Other

-57

103

1

Postretirement benefit plan contributions

-192

-643

-100

Changes in operating assets and liabilities:

Trade receivables

-100

59

-75

Inventories

-76

-146

-13

Accounts payable

40

72

-59

Accrued income taxes

132

-192

112

Accrued and prepaid advertising, promotion and trade allowances

4

-12

91

Accrued salaries and wages

89

-169

42

All other current assets and liabilities

45

35

85

Total cash flow from operating activities

$1,567

$1,005

$1,636

Investing activities

Short-term investments in financial assets, net

15

8

5

Acquisition of property, plant, and equipment

-587

-465

-370

Total cash flow from investing activities

-572

-457

-365

Financing activities

Net increase (reduction) of notes payable, with maturities less than or equal to 90 days

189

-1

-1284

Issuances of notes payable, with maturities greater than 90 days

0

0

10

Reductions of notes payable, with maturities greater than 90 days

0

0

-70

Issuances of long-term debt

895

987

1241

Reductions of long-term debt

-945

-1

-482

Net issuances of common stock

291

204

131

Common stock repurchases

-798

-1052

-187

Cash dividends

-604

-584

-546

Other

-7

9

-5

Total cash flow from financing activities

-979

-438

-1192

Net interest paid

233

248

295

Tax rate

29.04%

28.82%

28.27%

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