| Free Cash Flows Rhodes Corporations financial statements are shown below. Rhodes Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) | | 2020 | | 2019 | | Sales | $ | 12,000 | | $ | 11,000 | | Operating costs excluding depreciation | | 10,622 | | | 9,742 | | Depreciation and amortization | | 350 | | | 330 | | Earnings before interest and taxes | $ | 1,028 | | $ | 928 | | Less interest | | 220 | | | 200 | | Pre-tax income | $ | 808 | | $ | 728 | | Taxes (25%) | | 202 | | | 182 | | Net income available to common stockholders | $ | 606 | | $ | 546 | | Common dividends | $ | 204 | | $ | 200 | Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars) | | 2020 | | 2019 | | Assets | | Cash | $ | 550 | | $ | 500 | | Short-term investments | | 130 | | | 100 | | Accounts receivable | | 2,750 | | | 2,500 | | Inventories | | 1,650 | | | 1,600 | | Total current assets | $ | 5,080 | | $ | 4,700 | | Net plant and equipment | | 3,650 | | | 3,500 | | Total assets | $ | 8,730 | | $ | 8,200 | | | | Liabilities and Equity | | Accounts payable | $ | 1,100 | | $ | 1,000 | | Accruals | | 550 | | | 500 | | Notes payable | | 178 | | | 100 | | Total current liabilities | $ | 1,828 | | $ | 1,600 | | Long-term debt | | 1,100 | | | 1,000 | | Total liabilities | $ | 2,928 | | | 2,600 | | Common stock | | 4,400 | | | 4,600 | | Retained earnings | | 1,402 | | | 1,000 | | Total common equity | $ | 5,802 | | $ | 5,600 | | Total liabilities and equity | $ | 8,730 | | $ | 8,200 | 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 | |
