eBook Free Cash Flows Rhodes Corporation's financial statements are shown below. Rhodes Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) 2020 2019 Sales $12,000 $10,000 Operating costs excluding depreciation 10,554 8,692 Depreciation and amortization 350 340 Earnings before interest and taxes $ 1,096 $ 968 Less interest 260 200 Pre-tax income $ 836 $ 768 Taxes (25%) 209 192 Net income available to common stockholders $ 627 $ 576 Common dividends $ 202 $ 200 Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars) 2020 2019 $ 450 210 Assets Cash Short-term investments Accounts receivable Inventories Total current assets Net plant and equipment Total assets 2,750 1,850 $5,260 3,750 $9,010 $ 400 200 2,500 1,800 $4,900 3,500 $8,400 100 Liabilities and Equity Accounts payable $ 900 $ 800 Accruals 450 400 Notes payable 196 Total current liabilities $1,546 $1,300 Long-term debt 900 800 Total liabilities $2.446 2,100 Common stock 5,439 5,600 Retained earnings 1,125 Total common equity $6,564 $6,500 Total liabilities and equity $9,010 58.400 Suppose the federal-plus-state tax corporate tax is 25%. Answer the following questions a. What is the net operating profile after taxes (NOPAT) for 20207 Enter your answer in millions. For example, an answer of 1 million should be entered as 1, not 1,000,000 Round your answer to the nearest whole number $ million b. What are the amounts of net operating working capital for both years? Enter your answers in mions. For example, an answer of $1 million should be entered and not 1,000,000 Round your answers to the nearest whole number 2020:5 million 700 2019: million What are the amounts of total net operating capital for both years? Enter your answers in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answers to the nearest whole number 2020: 5 million 2019: milion d. What is the free cash flow for 20207 Enter your answer in millions. For example, an answer of st million should be entered as 1, not 1,000,000 Cash outfiow, if any, should be indicated by a minus sign. Round your answer to the nearest whole number million 6. What is the ROIC for 20207 Round your answer to two decimal places d. What is the free cash flow for 20207 Enter your answer in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Cash outflow, if any, should be indicated by a minus sign. Round your answer to the nearest whole number million e. What is the ROIC for 20207 Round your answer to two decimal places 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 million should be entered as 1, not 1,000,000. Round your answers to the nearest whole number After-tax interest payment $ million Reduction (increase) in debt $ million Payment of dividends $ million Repurchase (Issue) stock $ million Purchase (Sale) of short-term investments $ million
