1 Video Excel Online Structured Activity: Free Cash Flows The data for Rhodes Corporation's has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. Open spreadsheet 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 $ $ million After-tax interest payment Reduction (increase) in debt Payment of dividends Repurchase (Issue) stock Purchase (Sale) of short-term investments $ million $ million 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 $9,000 1.10% 11.00% 24.00% 25.00% 8.00% 7.00% 1 Free Cash Flows 2 (All dollar values are provided in millions.) 3 2018 4 Sales, ST Invest, Notes Pay, LT Debt factor increase 1.25 5 Operating costs as % of sales 77.50% 6 Cash factor increase 1.20 7 Accts. Rec factor increase 1.20 8 Inventory factor increase 1.20 9 9 Net Plant & Equip factor increase 1.15 10 Accts Pay factor increase 1.25 11 Accruals factor increase 1.20 12 13 Depreciation as % of Net Plant & Equip 10.00% 14 Interest rate 10.00% 15 Tax rate 40.00% 16 Payout rate 90.00% 17 18 19 19 20 20 21 22 22 Income Statements: 2018 23 23 Sales $11,250.0 24 Operating costs excluding depreciation 8,718.8 25 Depreciation and amortization 258.8 20.0 26 Earnings before interest and taxes $2,272.5 27 2 Less interest 241.9 28 Pre-tax income $2,030.6 29 Taxes 812.3 30 Net income available to common stockholders $1,218.4 31 Common dividends $1,096.5 32 Operating cost as % of sales Depreciation as % of Net Plant & Equip Interest rate Tax rate an lae 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% 0.0070 10.00% % 10.00% 40.00% 80.00% 0.50% 2.00% 20.00% 1.50 2017 $9,000.0 7,650.0 225.0 CV.M $1,125.0 193.5 $931.5 372.6 $558.9 $447.1 2018 2017 $118.8 $99.0 56.3 Balance Sheets Assets Cash Short-term investments Accounts receivable Inventories Total current assets Net plant and equipment Total assets 1,188.0 2,592.0 45.0 990.0 2,160.0 $3,294.0 2.250.0 $5,544.0 $3,955.1 2,587.5 $6,542.6 $900.0 756.0 Liabilities and Equity Accounts payable Accruals Notes payable Total current liabilities L Long-term debt Total liabilities Common stock Retained earnings Total common equity Total liabilities and equity 225.0 $1,881.0 2,250.0 $4.131.0 2,122.0 289.5 52,411.6 $6,542.6 $720.0 630.0 180.0 $1,530.0 1.800.0 $3,330.0 2,046.3 167.7 $2,214.0 $5,544.0 E F G H ] K L M N Q R FORMULAS NOPAT 2018 $4.0 #N/A NOWC 2018 NOWC2017 #N/A #N/A Total net operating capital 2018 Total net operating capital 2017 #N/A #N/A Free cash flow 2018 #N/A ROIC 2018 #N/A Uses of free cash flow: After-tax interest payment Reduction (increase) in debt Payment of dividends Repurchase (issue) stock Purchase (sale) of short-term investments Total #N/A #N/A #N/A #N/A #N/A #N/A