Free Cash Flows Rhodes Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) | 2018 | | 2017 | Sales | $7,500.0 | | $6,000.0 | Operating costs excluding depreciation | 6,375.0 | | 5,100.0 | Depreciation and amortization | 165.0 | | 150.0 | Earnings before interest and taxes | $960.0 | | $750.0 | Less Interest | 161.0 | | 129.0 | Pre-tax income | $799.0 | | $621.0 | Taxes (40%) | 319.6 | | 248.4 | Net income available to common stockholders | $479.4 | | $372.6 | Common dividends | $431.0 | | $298.0 | Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars) | 2018 | | 2017 | Assets | Cash | $109.0 | | $84.0 | Short-term investments | 38.0 | | 30.0 | Accounts receivable | 1,092.0 | | 840.0 | Inventories | 1,200.0 | | 960.0 | Total current assets | $2,439.0 | | $1,914.0 | Net plant and equipment | 1,650.0 | | 1,500.0 | Total assets | $4,089.0 | | $3,414.0 | Liabilities and Equity | Accounts payable | $450.0 | | $360.0 | Accruals | 468.0 | | 360.0 | Notes payable | 150.0 | | 120.0 | Total current liabilities | $1,068.0 | | $840.0 | Long-term debt | 1,500.0 | | 1,200.0 | Total liabilities | $2,568.0 | | $2,040.0 | Common stock | 1,360.6 | | 1,262.0 | Retained earnings | 160.4 | | 112.0 | Total common equity | $1,521.0 | | $1,374.0 | Total liabilities and equity | $4,089.0 | | $3,414.0 | Using Rhodes Corporation's financial statements (shown above), answer the following questions. - What is the net operating profit after taxes (NOPAT) for 2018? 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 answers in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answers to the nearest whole number. 2018: $ million 2017: $ million
- What are the amounts of total net operating capital for both years? Enter your answers in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answers to the nearest whole number. 2018: $ million 2017: $ million
- What is the free cash flow for 2018? Enter your answer in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000. Cash outflow, if any, should be indicated by a minus sign. Round your answer to one decimal place. $ million
- What is the ROIC for 2018? 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 | |