Free Cash Flows

Rhodes Corporation: Income Statements for Year Ending December $31($Millions of Dollars$)$

$20162015$

Sales $$9,000\mathrm{.}0$ $$7,500\mathrm{.}0$

Operating costs excluding depreciation $7,650\mathrm{.}06,375\mathrm{.}0$

Depreciation and amortization $244\mathrm{.}0195\mathrm{.}0$

Earnings before interest and taxes $$1,106\mathrm{.}0$ $$930\mathrm{.}0$

Less Interest $193\mathrm{.}0161\mathrm{.}0$

Pre$-$tax income $$913\mathrm{.}0$ $$769\mathrm{.}0$

Taxes $(40\%)365\mathrm{.}2307\mathrm{.}6$

Net income available to common stockholders $$547\mathrm{.}8$ $$461\mathrm{.}4$

Common dividends $$493\mathrm{.}0$ $$369\mathrm{.}0$

Rhodes Corporation: Balance Sheets as of December $31($Millions of Dollars$)$

$20162015$

Assets

Cash $$141\mathrm{.}0$ $$113\mathrm{.}0$

Short$-$term investments $46\mathrm{.}038\mathrm{.}0$

Accounts receivable $1,406\mathrm{.}01,125\mathrm{.}0$

Inventories $1,406\mathrm{.}01,125\mathrm{.}0$

Total current assets $$2,999\mathrm{.}0$ $$2,401\mathrm{.}0$

Net plant and equipment $2,438\mathrm{.}01,950\mathrm{.}0$

Total assets $$5,437\mathrm{.}0$ $$4,351\mathrm{.}0$

Liabilities and Equity

Accounts payable $$495\mathrm{.}0$ $$450\mathrm{.}0$

Accruals $604\mathrm{.}0525\mathrm{.}0$

Notes payable $180\mathrm{.}0150\mathrm{.}0$

Total current liabilities $$1,279\mathrm{.}0$ $$1,125\mathrm{.}0$

Long$-$term debt $1,800\mathrm{.}01,500\mathrm{.}0$

Total liabilities $$3,079\mathrm{.}0$ $$2,625\mathrm{.}0$

Common stock $2,164\mathrm{.}21,587\mathrm{.}0$

Retained earnings $193\mathrm{.}8139\mathrm{.}0$

Total common equity $$2,358\mathrm{.}0$ $$1,726\mathrm{.}0$

Total liabilities and equity $$5,437\mathrm{.}0$ $$4,351\mathrm{.}0$

Using Rhodes Corporation's financial statements $($shown above$),$ answer the following questions.

What is the net operating profit after taxes $($NOPAT$)$ for $2016?$ Enter your answer in millions. For example, an answer of $$1\mathrm{.}2$ million should be entered as $1\mathrm{.}2,$ not $1,200,000.$ Round your answer to one decimal place.

$

million

What are the amounts of net operating working capital for both years? Enter your answer in millions. For example, an answer of $$1\mathrm{.}2$ million should be entered as $1\mathrm{.}2,$ not $1,200,000.$ Round your answers to one decimal place.

$2016$ $

million

$2015$ $

million

What are the amounts of total net operating capital for both years? Enter your answer in millions. For example, an answer of $$1\mathrm{.}2$ million should be entered as $1\mathrm{.}2,$ not $1,200,000.$ Round your answers to one decimal place.

$2016$ $

million

$2015$ $

million

What is the free cash flow for $2016?$ Enter your answer in millions. For example, an answer of $$1\mathrm{.}2$ million should be entered as $1\mathrm{.}2,$ not $1,200,000.$ Round your answer to one decimal place.

$

million

What is the ROIC for $2016?$ 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 answer in millions. For example, an answer of $$1\mathrm{.}2$ million should be entered as $1\mathrm{.}2,$ not $1,200,000.$ Round your answers to one decimal place.

After$-$tax interest payment $

million

Reduction $($increase$)$ in debt $

million

Payment of dividends $

million

Repurchase $($Issue$)$ stock $

million

Purchase $($Sale$)$ of short$-$term investments