eBook Free Cash Flows Rhodes Corporation's financial statements are shown below. Rhodes Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) 2022 2021 Sales $ 13,000 $11,000 Operating costs excluding depreciation 11,514 9,658 Depreciation and amortization 430 390 Earnings before interest and taxes $ 1,056 $ 952 Less interest 180 100 Pre-tax income $ $ 852 Taxes (25%) 219 213 Net income available to common stockholders 657 $ 639 Common dividends 204 $ 200 Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars) 876 2022 2021 Assets $ 450 $ 400 Cash Short-term investments Accounts receivable Inventories 130 2,750 100 2,500 1,350 1,200 Inventories Total current assets Net plant and equipment Total assets 1,350 $4,680 3,850 $8,530 1,200 $4,200 3,500 $7,700 Liabilities and Equity Accounts payable $ 900 $ 800 Accruals 450 400 Notes payable 384 200 Total current liabilities $1,734 $1,400 Long-term debt 900 800 Total liabilities $2,634 2,200 Common stock 4,543 4,600 Retained earnings 1,353 900 Total common equity $5,896 $5,500 Total liabilities and equity $8,530 $7,700 Suppose the federal-plus-state tax corporate tax is 25%. Answer the following questions, a. What is the net operating profit after taxes (NOPAT) for 2022? 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 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. 2022:5 million 2021: 5 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 million should be entered as 1. not 1,000,000. Round your answers to the nearest whole number 2022: $ million 2021:5 million d. What is the free cash flow for 2022? 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 S million b. What are the amounts of net operating working capital for both years? Enter your answers in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000 Round your answers to the nearest whole number 2022:$ million 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 million should be entered as 1, not 1,000,000. Round your answers to the nearest whole number 2022: $ million 2021: $ $ 2021: $ million d. What is the free cash flow for 20227 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 20227 Round your answer to two decimal places. % 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 invesznents? (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
