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 11,462 9,618 Depreciation and amortization 430 390 Earnings before interest and taxes $ 1,108 $ 992 Less interest 240 200 Pre-tax income $ 868 $ 792 Taxes (25%) 217 198 Net income available to common stockholders $ 651 $ 594 Common dividends $ 204 $ 200 Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars) 2020 2019 $ 450 $ 400 210 200 Assets Cash Short-term investments Accounts receivable Inventories Total current assets Net plant and equipment Total assets 2,750 1,550 $ 4,960 2,500 1,300 $4,400 3,500 $ 7,900 3,750 $8,710 $ 900 $ 800 450 400 Liabilities and Equity Accounts payable Accruals Notes payable Total current liabilities Long-term debt Total liabilities 100 178 $1,528 $1,300 900 800 $ 2,428 2,100 Common stock 5,135 5,100 Retained earnings 1,147 700 Total common equity $6,282 $5,800 Total liabilities and equity $8,710 $ 7,900 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: $ million million 2019: $ c. 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 d. 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 e. What is the ROIC for 2020? Round your answer to two decimal places. % f. 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 $ $
