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 Operating costs excluding depreciation Depreciation and amortization $ 11,000 9,578 370 $ 10,000 8,726 330 $ 944 Earnings before interest and taxes Less interest $ 1,052 220 200 Pre-tax income $ 832 $ 744 Taxes (25%) 208 186 Net income available to common stockholders $ 624 $ 558 Common dividends $ 204 $ 200 Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars) 2020 2019 Assets Cash Short-term investments $ 550 220 $ 500 200 Accounts receivable Inventories 2,750 1,450 2,500 1,400 $4,600 Total current assets Net plant and equipment Total assets $4,970 3,650 $8,620 3,500 $ 8,100 Liabilities and Equity Accounts payable $1,100 $1,000 Accruals 550 500 Notes payable 392 200 Total current liabilities $2,042 $ 1,700 Long-term debt 1,100 1,000 Total liabilities $3,142 2,700 Common stock 4,358 4,700 Retained earnings 1,120 700 Total common equity $5,478 $5,400 Total liabilities and equity $ 8,620 $ 8,100 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 2019: $ million 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
