Free Cash Flows Rhodes Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) 2016 2015 Sales $7,200.0 $6,000.0 Operating costs excluding depreciation 5,580.0 5,100.0 Depreciation and amortization 200.0 174.0 Earnings before interest and taxes $1,420.0 $726.0 Less Interest 155.0 129.0 Pre-tax income $1,265.0 $597.0 Taxes (40%) 506.0 238.8 Net income available to common stockholders $759.0 $358.2 Common dividends $683.0 $287.0 4 Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars) 2016 2015 Assets Cash Short-term investments Accounts receivable $86.0 $66.0 36.0 30.0 780.0 600.0 Inventories 1,584.0 1,320.0 Total current assets $2,486.0 $2,016.0 Net plant and equipment 2,001.0 1,740.0 Total assets $4,487.0 $3,756.0 Liabilities and Equity Accounts payable $600.0 $480.0 Accruals 483.0 420.0 Notes payable 144.0 120.0 Total current liabilities $1,227.0 $1,020.0 Long-term debt 1,440.0 1,200.0 Total liabilities $2,667.0 $2,220.0 Common stock Retained earnings 1,637.0 1,429.0 183.0 107.0 Total common equity Total liabilities and equity $1,820.0 $1,536.0 $4,487.0 $3,756.0 Using Rhodes Corporation's financial statements (shown above), answer the following questions. 4 Using Rhodes Corporation's financial statements (shown above), answer the following questions. a. What is the net operating profit after taxes (NOPAT) for 2016? Enter your answer in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000. Round your answer to one decimal place. $ 428.4 million b. What are the amounts of net operating working capital for both years? Enter your answer in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000. Round your answers to one decimal place. 2016 $ 2219 2015 $ 2086 million million c. What are the amounts of total net operating capital for both years? Enter your answer in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000. Round your answers to one decimal place. 2016 $ 2015 $ 4220 3826 million million d. What is the free cash flow for 20167 Enter your answer in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000. Round your answer to one decimal place. $ 192 million e. What is the ROIC for 20167 Round your answer to two decimal places. 18 ninaments, dividends, net stock repurchases, and net purchases of 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 short-term investments? (Hint: Remember that a net use can be negative.) Enter your answer in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000. Round your answers to one decimal place. After-tax interest payment $ 93 million Reduction (increase) in debt $ 96 million. Payment of dividends - $ 683 million Repurchase (Issue) stock. $ 192 million Purchase (Sale) of short-term 5 6 million investments