1 Free Cash Flows (All dollar values are provided in millions.) 3 2018 4 Sales, ST Invest. Notes Pay, LT Debt factor increase 5 Operating costs as % of sales 6 Cash factor increase 7 Accts. Rec factor increase 8 Inventory factor increase 9 Net Plant & Equip factor increase 10 Aucts Pay factor increase 11 Accruals factor increase 12 13 Depreciation as % of Net Plant & Equip 14 Interest rate 15 Tax rate 16 Payout rate 17 18 19 20 21 22 Income Statemente. 1.25 77.50% 1.15 1.25 1.25 1.15 1.10 1.15 2017 Sales Cash as % of sales Accts Rec as % of sales Inventory as % of sales Net Plant & Equip as % of sales Accts Pay as % of sales Accruals as % of Sales $1,500 1.10% 14.00% 16.00% 23.00% 8.00% 4.00% 10.00% 10.00% 40.00% 90.00% Operating cost as % of sales Depreciation as % of Net Plant & Equip Interest rate Tax rate Payout rate Short-term investments as % of sales Notes payable as % of sales Long-term debt as % of sales Retained earnings multiple factor 85.00% 10.00% 10.00% 40.00% 80.00% 0.50% 2.00% 20.00% 1.50 22 Income Statements: 23 Sales 24 Operating costs excluding depreciation 25 Depreciation and amortization 26 Earnings before interest and taxes 27 Less interest 28 Pre-tax income 29 Taxes 30 Net income available to common stockholders 31 Common dividends 32 33 Balance Sheets: 34 Assets 35 Cash 36 Short-term investments 37 Accounts receivable 38 Inventories 39 Total current assets 40 Net plant and equipment 41 Total assets 42 2018 $1,875.0 1,453.1 39.7 $382.2 40.3 $341.9 136.8 $205.1 $184.6 2017 $1,500.0 1,275.0 34.5 $190.5 32.3 $158.3 63.3 $95.0 $76.0 2018 2017 $19.0 9.4 262.5 300.0 $590.9 396.8 $987.6 $16.5 7.5 210.0 240.0 $474.0 345.0 $819.0 Liabilities and Equity Accounts payable Accruals Notes payable Total current liabilities Long-term debt Total liabilities Common stock Retained earnings - Total common equity 3 Total liabilities and equity $132.0 69.0 37.5 $238.5 375.0 $613.5 325.1 49.0 $374.1 $987.6 $120.0 60.0 30.0 $210.0 300.0 $510.0 280.5 28.5 $309.0 $819.0 a. What is the net operating profit after taxes (NOPAT) for 2018? Enter your answer in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000. Do not round intermediate calculations. Round your answer to one decimal place. million b. What are the amounts of net operating working capital for both years? Enter your answers in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000. Do not round intermediate calculations. Round your answers to one decimal place. 2018 $ million 2017 $ million c. What are the amounts of total net operating capital for both years? Enter your answers in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000. Do not round Intermediate calculations. Round your answers to one decimal place. 2018 $ million 2017 $ million d. What is the free cash flow for 2018? Enter your answer in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000. Do not round intermediate calculations. Round your answer to one decimal place. million $ e. What is the ROIC for 2018? Round your answer to one decimal place. f. How much of the FCF did Rhodes use for each of the following purposes: after-tax interest, net debt repayments, dividends, net stock repurchases, and net purchases of short-term investments? (Hint: Remember that a net use can be negative.) Enter your answers in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000. Do not round intermediate calculations. Round your answers to one decimal place. $ million million After-tax interest payment Reduction (increase) in debt Payment of dividends Repurchase (Issue) stock Purchase (Sale) of short-term Investments million million million