6 Accounting Chapter 6 Managemenl Accounting for Financial challenging Problems 12-13 6-12 Free Cash Flows (shown below), answer the Using Rhodes Corporation's financial statements following questions. 2015? a. What is the net operating profit after taxes (NOPAT for for both years? What are the amounts of net operating working capital 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? purposes: How much of the FCF did Rhodes use for each of the following 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 2014 2015 $11,000 $10,000 8,500 9.360 Operating costs excluding depreciation 36 Depreciation and amortization 1,260 1,140 Earnings before interest and taxes 12 100 Less interest s 1,140 s 1,040 Pre-tax income 416 Taxes (40%) Net income available to common stockholders 684 s 624 220 200 Common dividends Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollar) 2014 2015 500 550 110 Short-term investments 2,750 Accounts receivable 650 $5,060 $4,600 Total current assets Net plant and equipment $8910 $8,100 Total assets (Continued)