Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Free Cash Flows Rhodes Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) 2018 2017 Sales $8,450.0 $6,500.0 Operating costs excluding depreciation Depreciation

image text in transcribed
image text in transcribed
Free Cash Flows Rhodes Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) 2018 2017 Sales $8,450.0 $6,500.0 Operating costs excluding depreciation Depreciation and amortization 6,971.0 5,525.0 165.0 150.0 Earnings before interest and taxes $1,314.0 $825.0 Less Interest 182.0 140.0 Pre-tax income $1,132.0 $685.0 Taxes (40%) 452.8 274.0 Net income available to common stockholders $679.2 $411.0 Common dividends $611.0 $329.0 Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars) 2018 2017 Assets Cash $94.0 $85.0 Short-term investments 43.0 33.0 1,268.0 975.0 Accounts receivable Inventories 1,690.0 1,300.0 Total current assets $3,095.0 $2,393.0 Net plant and equipment 1,645.0 1,495.0 Total assets $4,740.0 $3,888.0 Liabilities and Equity Accounts payable $650.0 $520.0 Accruals 254.0 195.0 Notes payable 169.0 130.0 Total current liabilities $1,073.0 $845.0 Long-term debt 1,690.0 1,300.0 $2,763.0 $2,145.0 Total liabilities 1,785.8 1,620.0 Common stock 191.2 123.0 Retained earnings $1,977.0 $1,743.0 Total common equity $4,740.0 $3,888.0 Total liabilities and equity Using Rhodes Corporation's financial statements (shown above), answer the following questions. ng ston operating prot after tas(NOPAT) for 2018 Enter your ans, for example, of 113 m 12,1,201.000 What is the What are the amounts of net operating working capital for both years? Enter your awes in more should be 2018 2017: milan mition What are the amounts of total net operating capital for both years? Enter your answers in millions. For example, an aner of thould beer as 1. m 2018 2017: d. What is the free cash flow for 2018? Ester your armar in mins. For example, an answer of 81.2 million should be entered es 1.2, net 1,200,000 Cash se ash What is the ROIC for 20187 Round your answer to ten decimal places How much of the FCF did Rhodes use for each of the futuwing purposes after-tax internet de repayments, divided to purchase chess of an answer of $1.2 milion should be entered as 12, not 1,200,000. Round your answers to one decine pa After-tax interest payment Reduction Cncrease) in dete Payment of dividends milion Repurchase (a) stock " mill Purchase (Sale) of short term investments 1,00.000 phot L001,00 Kunder the wh

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Office Of Anticorruption And Integrity Annual Report 2023

Authors: Asian Development Bank

1st Edition

9292544381,929254439X

More Books

Students also viewed these Finance questions

Question

Marole Choice Optian A Opten 1 gpeon E Option D

Answered: 1 week ago