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	$	13,000		$	11,000
Operating costs excluding depreciation		11,486			9,614
Depreciation and amortization		430			390
Earnings before interest and taxes	$	1,084		$	996
Less interest		140			100
Pre-tax income	$	944		$	896
Taxes (25%)		236			224
Net income available to common stockholders	$	708		$	672
Common dividends	$	203		$	200

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

	2020			2019
Assets
Cash	$	650		$	600
Short-term investments		210			200
Accounts receivable		2,750			2,500
Inventories		1,550			1,300
Total current assets	$	5,160		$	4,600
Net plant and equipment		3,650			3,500
Total assets	$	8,810		$	8,100
Liabilities and Equity
Accounts payable	$	1,300		$	1,200
Accruals		650			600
Notes payable		356			200
Total current liabilities	$	2,306		$	2,000
Long-term debt		1,300			1,200
Total liabilities	$	3,606			3,200
Common stock		3,399			3,600
Retained earnings		1,805			1,300
Total common equity	$	5,204		$	4,900
Total liabilities and equity	$	8,810		$	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.

   $ 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.