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Use the following balance sheets and income statement to answer this question Tully Corp (all in $ Million) 2018 2019 LIABILITIES AND EQUITY 2018 2019

Use the following balance sheets and income statement to answer this question

Tully Corp (all in $ Million)

2018

2019

LIABILITIES AND EQUITY

2018

2019

Current assets:

Accounts payable

540.0

398.1

Cash and cash equivalents

1,148.1

1,188.6

Accrued liabilities

1,086.5

1,301.5

Short-term investments

902.6

848.4

Deferred revenue

449.3

510.2

Accounts receivable, net

386.5

485.9

Long-term debt

549.5

549.6

Inventories

965.8

1,241.5

Other long-term financing liabilities

347.8

345.3

Prepaid expenses

391.9

435.2

Total liabilities

2,973.1

3,104.7

Total current assets

3,794.9

4,199.6

Common stock par value

0.7

0.7

Long-term investments securities

479.3

575.9

Additional paid-in capital

40.5

40.5

Property, plant and equipment, net

2,355.0

2,658.9

Retained earnings

4,297.4

5,046.2

Other operating assets

731.2

784.8

Other equity interests

48.4

27.1

TOTAL ASSETS

7,360.4

8,219.2

Total shareholders' equity

4,387.0

5,114.5

Non-controlling interests

2.4

5.5

Tully Corp (in $ Million)

2018

2019

Total equity

4,387.3

5,114.5

Total net revenue

11,700.4

13,299.5

TOTAL LIABILITIES AND EQUITY

7,360.4

8,219.2

Cost of sales

4,915.5

5,813.3

Store and operating expense

3,987.7

4,348.0

Depreciation expense

523.3

550.3

General administrative expense

749.3

801.2

Other operating income

203.9

210.7

Operating income

1,728.5

1,997.4

Interest income

115.9

94.4

Interest expense

-33.3

-32.7

Earnings before income tax

1,811.1

2,059.1

Income taxes

563.1

674.4

Net earnings

1,248.0

1,384.7

Total dividend payment

419.1

635.9

Shares outstanding

748.3

754.4

Calculate the firms free-cash-flow (FCF) for Tully during 2019 and carefully interpret the meaning of free cash flow that you calculated to the firm's investors.

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