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Free Cash Flows Rhodes Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) 2018 2017 Sales $6,900.0 $6,000.0 Operating costs excluding depreciation 5,693.0
Free Cash Flows
Rhodes Corporation: Income Statements for Year Ending December 31 (Millions of Dollars)
2018 | 2017 | ||
Sales | $6,900.0 | $6,000.0 | |
Operating costs excluding depreciation | 5,693.0 | 5,100.0 | |
Depreciation and amortization | 164.0 | 126.0 | |
Earnings before interest and taxes | $1,043.0 | $774.0 | |
Less Interest | 148.0 | 129.0 | |
Pre-tax income | $895.0 | $645.0 | |
Taxes (40%) | 358.0 | 258.0 | |
Net income available to common stockholders | $537.0 | $387.0 | |
Common dividends | $483.0 | $310.0 |
Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars)
2018 | 2017 | ||
Assets | |||
Cash | $66.0 | $60.0 | |
Short-term investments | 35.0 | 30.0 | |
Accounts receivable | 924.0 | 840.0 | |
Inventories | 1,320.0 | 1,200.0 | |
Total current assets | $2,345.0 | $2,130.0 | |
Net plant and equipment | 1,638.0 | 1,260.0 | |
Total assets | $3,983.0 | $3,390.0 | |
Liabilities and Equity | |||
Accounts payable | $621.0 | $540.0 | |
Accruals | 345.0 | 300.0 | |
Notes payable | 138.0 | 120.0 | |
Total current liabilities | $1,104.0 | $960.0 | |
Long-term debt | 1,380.0 | 1,200.0 | |
Total liabilities | $2,484.0 | $2,160.0 | |
Common stock | 1,329.0 | 1,114.0 | |
Retained earnings | 170.0 | 116.0 | |
Total common equity | $1,499.0 | $1,230.0 | |
Total liabilities and equity | $3,983.0 | $3,390.0 |
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
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