Free Cash Flows

Rhodes Corporation's financial statements are shown below.

Rhodes Corporation: Income Statements for Year Ending December 31

(Millions of Dollars)

20202019Sales$11,000$10,000Operating costs excluding depreciation9,6248,710Depreciation and amortization360330Earnings before interest and taxes$1,016$960Less interest140100Pre-tax income$876$860Taxes (25%)219215Net income available to common stockholders$657$645Common dividends$205$200

Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars)

20202019AssetsCash$450$400Short-term investments110100Accounts receivable2,7502,500Inventories1,8501,600Total current assets$5,160$4,600Net plant and equipment3,7503,500Total assets$8,910$8,100Liabilities and EquityAccounts payable$900$800Accruals450400Notes payable190100Total current liabilities$1,540$1,300Long-term debt900800Total liabilities$2,4402,100Common stock4,9184,900Retained earnings1,5521,100Total common equity$6,470$6,000Total liabilities and equity$8,910$8,100

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. 2020 $million
2. 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
3. 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
4. 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.
5. What is the ROIC for 2020? Round your answer to two decimal places.
6. 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