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 11,502 9,630 Depreciation and amortization 430 390 Earnings before interest and taxes $ 1,068 $ 980 Less interest 240 200 Pre-tax income $ 828 $ 780 Taxes (25%) 207 195 Net income available to common stockholders $ 621 $ $ 585 Common dividends $ 205 $ 200 Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars) : ) 2020 2019 Assets Cash $ 450 $ 400 Short-term investments 130 100 Accounts receivable 2.750 2.500 Inventories 1,750 1,700 Total current assets $ 5,080 $ 4,700 Net plant and equipment 3,850 3,500 Total assets $ $ 8,930 $ 8,200 Vlilk eta ila si lililitsi la llei 200 Liabilities and Equity Accounts payable $ 900 $ 800 Accruals 450 400 Notes payable 384 Total current liabilities $ 1,734 $ 1,400 Long-term det 900 Total liabilities $2,634 2,200 Common stock 5,180 5,300 etained earnings 1,116 700 Total common equity $ 6,296 $ 6,000 Total liabilities and equity $ 8,930 $ 8.200 Suppose the federal-plus-state tax corporate tax is 25%. Answer the following questions a. 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 b. 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: 5 million 2019: $ million c. What are the amounts of total net operating capital for both years? Enter your answers in milions. 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 d. What is the free cash flow for 2020? Enter your answer in millions. For example, an answer of Si 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 e. What is the ROIC for 2020? Round your answer to two decimal places. . Beta . 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
