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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.

  1. 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

  1. 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

  1. 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

  1. 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

  1. What is the ROIC for 2020? Round your answer to two decimal places.

%

  1. 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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