Challenging Problems 12-13 6-12 Free Cash Flows Using Rhodes Corporation's financial statements (shown below), answer the following questions. 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) 2014 2015 $11,000 9,360 380 Sales Operating costs excluding depreciation Depreciation and amortization Earnings before interest and taxes Less interest Pre-tax income Taxes (40%) Net income available to common stockholders Common dividends $10,000 8,500 360 $ 1,140 100 $ 1,040 $ 1,260 120 $ 1,140 456 $ 684 $ 220 416 $ 624 $ 200 Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars) 2015 2014 $ 500 Assets Cash Short-term investments Accounts receivable Inventories Total current assets Net plant and equipment Total assets $ 550 110 2,750 1,650 $5,060 3,850 $8,910 100 2,500 1,500 $4,600 3,500 $8,100 (Continued) $1,000 500 200 Liabilities and Equity Accounts payable Accruals Notes payable Total current liabilities Long-term debt Total liabilities Common stock Retained earnings Total common equity Total liabilities and equity $1,100 550 384 $2,034 1,100 $3,134 4,312 1,464 $5,776 $8,910 $1,700 1,000 $2,700 4,400 1,000 $5,400 $8,100