Free Cash Flows Rhodes Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) 2018 2017 Sales $2,300.0 $2,000.0 Operating costs excluding depreciation 1,783.0 1,700.0 Depreciation and amortization 75.0 58.0 Earnings before interest and taxes $442.0 $242.0 Less Interest 49.0 43.0 Pre tax income $393.0 $199.0 Taxes (40%) 157.2 79.6 Net income available to common stockholders $235.8 $119.4 Common dividends $212.0 $96.0 Rhodes Corporation: Balance Sheets as of December 31 (Millions of dollars) 2018 2017 $24.0 10.0 Assets Cash Short-term investments Accounts receivable Inventories Total current assets Net plant and equipment Total assets Liabilities and Equity $30.0 12.0 322.0 391.0 $755.0 754.0 $1,509.0 280.0 340.0 $654.0 580.0 $1,234.0 $132.0 156.0 46.0 Liabilities and Equity Accounts payable Accruals Notes payable Total current liabilities Long-term debt Total liabilities Common stock Retained earnings Total common equity Total liabilities and equity $334.0 460.0 $794.0 656.2 $120.0 120.0 40.0 $280.0 400.0 $680.0 519.0 35.0 $554.0 $1,234.0 58.8 $715.0 $1,509.0 w were flowing questions a. What is the net operating profit after taxes (NOPAT) for 20187 Enter your answer in millions. For example, an answer of $1.2 million should be entered a 1.2, 1.200,000. Rund your answer to one decimal place. 501.0 million $ b. What are the amounts of net operating working capital for both years? Enter your answers in millions. For example, an answer of St million should be entered us 1. not 1,000,000 Round your answers to the nearest whole number 2018: 5 333.0 million 2017: 206.0 million c. What are the amounts of total net operating capital for both years? Enter your answers in million. For example, an answer of 1 million should be entered os 1, nr 1,000,000 Hound your answers to the nearest whole number 2018: million 2017: 5 million d. What is the free cash flow for 2018? Enter your answer in milions. For example, an answer of $1.2 milion should be entered a 12. not 1,200,000 Cash outflow, if any, should be indicated by a minus sign. Round your answer to one decimal place. million e. What is the ROIC for 20187 Round your answer to two decimal places t. How much of the FCF did Rhodes use for each of the following purposes: after-tax interest, et debt repayments, dividends, net stock reparchases, and not purchmes 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 1.2 1.200,000. Round your answers to one decimal place After-tax interest payment 5 million Reduction (increase) in debt $ million Payment of dividends $ maan Repurchase (Issue) stock 5 Purchase (sle) of short-term investments $ million
