Free Cash Flows

Rhodes Corporation: Income Statements for Year Ending December 31 (Millions of Dollars)

	2018		2017
Sales	$1,200.0		$1,000.0
Operating costs excluding depreciation	900.0		850.0
Depreciation and amortization	29.0		23.0
Earnings before interest and taxes	$271.0		$127.0
Less Interest	26.0		22.0
Pre-tax income	$245.0		$105.0
Taxes (40%)	98.0		42.0
Net income available to common stockholders	$147.0		$63.0
Common dividends	$132.0		$50.0

Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars)

	2018		2017
Assets
Cash	$12.0		$10.0
Short-term investments	6.0		5.0
Accounts receivable	110.0		100.0
Inventories	240.0		200.0
Total current assets	$368.0		$315.0
Net plant and equipment	288.0		230.0
Total assets	$656.0		$545.0
Liabilities and Equity
Accounts payable	$91.0		$70.0
Accruals	46.0		40.0
Notes payable	24.0		20.0
Total current liabilities	$161.0		$130.0
Long-term debt	240.0		200.0
Total liabilities	$401.0		$330.0
Common stock	220.0		195.0
Retained earnings	35.0		20.0
Total common equity	$255.0		$215.0
Total liabilities and equity	$656.0		$545.0

Using Rhodes Corporation's financial statements (shown above), answer the following questions.

1. What is the ROIC for 2018? Round your answer to two decimal places. %
2. 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