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Free Cash Flows Rhodes Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) 2016 2015 Sales $1,800.0 $1,500.0 Operating costs excluding depreciation 1,485.0
Free Cash Flows
Rhodes Corporation: Income Statements for Year Ending December 31 (Millions of Dollars)
2016 | 2015 | ||
Sales | $1,800.0 | $1,500.0 | |
Operating costs excluding depreciation | 1,485.0 | 1,275.0 | |
Depreciation and amortization | 49.0 | 41.0 | |
Earnings before interest and taxes | $266.0 | $184.0 | |
Less Interest | 39.0 | 32.0 | |
Pre-tax income | $227.0 | $152.0 | |
Taxes (40%) | 90.8 | 60.8 | |
Net income available to common stockholders | $136.2 | $91.2 | |
Common dividends | $123.0 | $73.0 |
Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars)
2016 | 2015 | ||
Assets | |||
Cash | $28.0 | $23.0 | |
Short-term investments | 10.0 | 8.0 | |
Accounts receivable | 216.0 | 180.0 | |
Inventories | 410.0 | 315.0 | |
Total current assets | $664.0 | $526.0 | |
Net plant and equipment | 486.0 | 405.0 | |
Total assets | $1,150.0 | $931.0 | |
Liabilities and Equity | |||
Accounts payable | $162.0 | $135.0 | |
Accruals | 138.0 | 120.0 | |
Notes payable | 36.0 | 30.0 | |
Total current liabilities | $336.0 | $285.0 | |
Long-term debt | 360.0 | 300.0 | |
Total liabilities | $696.0 | $585.0 | |
Common stock | 413.8 | 319.0 | |
Retained earnings | 40.2 | 27.0 | |
Total common equity | $454.0 | $346.0 | |
Total liabilities and equity | $1,150.0 | $931.0 |
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 $1.2 million should be entered as 1.2, 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 $1.2 million should be entered as 1.2, 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 $1.2 million should be entered as 1.2, 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 $1.2 million should be entered as 1.2, 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 $1.2 million should be entered as 1.2, 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 $__________ million
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