Free Cash Flows Rhodes Corporation's financial statements are shown below. Rhodes Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) 2020 2019 Sales
Free Cash Flows
Rhodes Corporation's financial statements are shown below.
Rhodes Corporation: Income Statements for Year Ending December 31(Millions of Dollars)
2020
2019
Sales
$
13,000
$
11,000
Operating costs excluding depreciation
11,662
9,720
Depreciation and amortization
350
340
Earnings before interest and taxes
$
988
$
940
Less interest
140
100
Pre-tax income
$
848
$
840
Taxes (25%)
212
210
Net income available to common stockholders
$
636
$
630
Common dividends
$
203
$
200
Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars)
2020
2019
Assets
Cash
$
450
$
400
Short-term investments
110
100
Accounts receivable
2,750
2,500
Inventories
1,850
1,800
Total current assets
$
5,160
$
4,800
Net plant and equipment
3,750
3,500
Total assets
$
8,910
$
8,300
Liabilities and Equity
Accounts payable
$
900
$
800
Accruals
450
400
Notes payable
352
200
Total current liabilities
$
1,702
$
1,400
Long-term debt
900
800
Total liabilities
$
2,602
2,200
Common stock
5,175
5,400
Retained earnings
1,133
700
Total common equity
$
6,308
$
6,100
Total liabilities and equity
$
8,910
$
8,300
Suppose the federal-plus-state tax corporate tax is 25%. Answer the following questions.
What is the net operating profit after taxes (NOPAT) for 2020? Enter your answer in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answer to the nearest whole number.
$ million
What are the amounts of net operating working capital for both years? Enter your answers in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answers to the nearest whole number.
2020:$ million
2019:$ million
What are the amounts of total net operating capital for both years? Enter your answers in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answers to the nearest whole number.
2020:$ million
2019:$ million
What is the free cash flow for 2020? Enter your answer in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Cash outflow, if any, should be indicated by a minus sign. Round your answer to the nearest whole number.
$ million
What is the ROIC for 2020? 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 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.
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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