B D E F 1 Free Cash Flows 2 (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 Accts 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 1 10 77 50 1 15 1 10 1 15 1 15 1 20 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 $7,000 1 00 12 00 20 00 26 00 9 00 7 00 1 20 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 18 19 20 21 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 2018 $7,700 0 5,967 5 209 3 $1,523 2 165 6 $1,357 7 543 1 $814 6 2017 $7,000 0 5,950 0 182 0 $868 0 150 5 $717 5 287 0 $430 5 $344 4 $733 1 32 2018 2017 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 $70 0 35 0 840 0 $80 5 38 5 924 0 1,610 0 $2,653 0 2,093 0 $4 746 0 1,400 0 $2,345 0 1,820 0 $4,165 0 $756 0 588 0 154 0 $1,498 0 1,540 0 $3,038 0 1,497 4 210 6 $1,708 0 $4,746 0 $630 0 490 0 140 0 $1,260 0 1,400 0 $2,660 0 1,375 9 129 2 $1,505 0 $4,165 0 FORMULAS N A 42 43 Liabilities and Equity 44 Accounts payable 45 Accruals 46 Notes payable 47 Total current liabilities 48 Long term debt 49 Total liabilities 50 Common stock 51 Retained earnings 52 Total common equity 53 Total liabilities and equity 54 55 56 NOPAT 2018 57 58 NOWC2018 59 NOWC2017 60 61 Total net operating capital2018 62 Total net operating capital2017 63 64 Free cash flow 2018 65 66 ROIC 2018 67 68 Uses of free cash flow 69 After tax interest payment 70 Reduction (increase) in debt 71 Payment of dividends 72 Repurchase (issue) stock 73 Purchase (sale) of short term investments 74 Total N A N A N A N A N A N A N A N A N A N A N A N A 75 76 77 78 79 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 After tax interest payment S million Reduction (increase) in debt S million Payment of dividends $ million Repurchase (Issue) stock $ million Purchase (Sale) of short term investments $ million Check My Work Reset Problem B C D E 2,093 0 $4,746 0 1,820 0 $4,165 0 40 Net plant and equipment 41 Total assets 42 43 Liabilities and Equity 44 Accounts payable 45 Accruals 46 Notes payable 47 Total current liabilities 48 Long term debt 49 Total liabilities 50 Common stock 51 Retained earnings 52 Total common equity 53 Total liabilities and equity 54 55 56 NOPAT 2018 57 58 NOWC2018 59 NOWC2017 $756 0 588 0 154 0 $1,498 0 1,540 0 $3,038 0 1,497 4 210 6 $1,708 0 $4,746 0 $630 0 490 0 140 0 $1,260 0 1,400 0 $2,660 0 1,375 9 129 2 $1,505 0 $4,165 0 FORMULAS N A N A N A

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B D E F 1 Free Cash Flows 2 (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 Accts 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 1 10 77 50  1 15 1 10 1 15 1 15 1 20 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 $7,000 1 00  12 00  20 00  26 00  9 00  7 00  1 20 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 18 19 20 21 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 2018 $7,700 0 5,967 5 209 3 $1,523 2 165 6 $1,357 7 543 1 $814 6 2017 $7,000 0 5,950 0 182 0 $868 0 150 5 $717 5 287 0 $430 5 $344 4 $733 1 32 2018 2017 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 $70 0 35 0 840 0 $80 5 38 5 924 0 1,610 0 $2,653 0 2,093 0 $4 746 0 1,400 0 $2,345 0 1,820 0 $4,165 0 $756 0 588 0 154 0 $1,498 0 1,540 0 $3,038 0 1,497 4 210 6 $1,708 0 $4,746 0 $630 0 490 0 140 0 $1,260 0 1,400 0 $2,660 0 1,375 9 129 2 $1,505 0 $4,165 0 FORMULAS  N A 42 43 Liabilities and Equity 44 Accounts payable 45 Accruals 46 Notes payable 47 Total current liabilities 48 Long term debt 49 Total liabilities 50 Common stock 51 Retained earnings 52 Total common equity 53 Total liabilities and equity 54 55 56 NOPAT 2018 57 58 NOWC2018 59 NOWC2017 60 61 Total net operating capital2018 62 Total net operating capital2017 63 64 Free cash flow 2018 65 66 ROIC 2018 67 68 Uses of free cash flow  69 After tax interest payment 70 Reduction (increase) in debt 71 Payment of dividends 72 Repurchase (issue) stock 73 Purchase (sale) of short term investments 74 Total  N A  N A  N A  N A  N A  N A  N A  N A  N A  N A  N A  N A 75 76 77 78 79 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  After tax interest payment S million Reduction (increase) in debt S million Payment of dividends $ million Repurchase (Issue) stock $ million Purchase (Sale) of short term investments $ million Check My Work Reset Problem B C D E 2,093 0 $4,746 0 1,820 0 $4,165 0 40 Net plant and equipment 41 Total assets 42 43 Liabilities and Equity 44 Accounts payable 45 Accruals 46 Notes payable 47 Total current liabilities 48 Long term debt 49 Total liabilities 50 Common stock 51 Retained earnings 52 Total common equity 53 Total liabilities and equity 54 55 56 NOPAT 2018 57 58 NOWC2018 59 NOWC2017 $756 0 588 0 154 0 $1,498 0 1,540 0 $3,038 0 1,497 4 210 6 $1,708 0 $4,746 0 $630 0 490 0 140 0 $1,260 0 1,400 0 $2,660 0 1,375 9 129 2 $1,505 0 $4,165 0 FORMULAS  N A  N A  N A

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B D E F 1 Free Cash Flows 2 (All dollar values are provided in millions.) 3 2018 4 Sales, ST Invest, Notes Pay, LT

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