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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.

  1. 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
  2. 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
  3. 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
  4. 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
  5. What is the ROIC for 2016? Round your answer to two decimal places. __________ %
  6. 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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