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Sparky Corp. reported after-tax operating income of $700 million. Free cash flow of $250 million was...

Sparky Corp. reported after-tax operating income of $700 million. Free cash flow of $250 million was calculated from the cash flow statement after $375 million in investments. Identify the following:

A. The “hard” and “soft” component of operating income.

B. The operating accruals for the year.

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