2-12 Using Rhodes Corporation's financial statements (shown below), answer the following Free Cash Flow questions. What is the net operating profit after taxes (NOPAT) for 2015? b. What are the amounts of net operating working capital for both years? c. What are the amounts of total net operating capital for both years? d. What is the free cash flow for 2015? e. What is the ROIC for 2015? 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.) Rhodes Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) 2015 2014 Sales $11,000 $10,000 Operating costs excluding depreciation 9,360 8,500 Depreciation and amortization 380 360 Earnings before interest and taxes 1,260 1,140 Less interest 120 100 Pre-tax income 1,140 1,040 Taxes (40%) 456 416 Net income available to common shareholders $ 684 $ 624 Common dividends $ 220 $ 200 NEI 2014 Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars) 2015 Assets Cash $ 550 Short-term investments 110 Accounts receivable 2,750 Inventories 1,650 Total current assets 5,060 Net plant and equipment 3,850 Total assets $ 8,910 $ 500 100 2,500 1,500 4,600 3,500 $ 8,100 Liabilities and Equity Accounts payable Accruals Notes payable Total current liabilities Long-term debt Total liabilities Common stock (120 million shares) Retained earnings Total common equity Total liabilities and equity Price per share WACC $ 1,100 550 384 2,034 1,100 3,134 4,312 1,464 5,776 $ 8,910 $ 1,000 500 200 1,700 1,000 2,700 4,400 1,000 5,400 $ 8,100 $ 60 $ 55 12% 12%