Module 2 - End of Chapter Assignment Chapter 02/ Chapter 03 Rhodes Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) 2020 2019 Sales $11,000 $10,000 Operating costs excluding depreciation 9,500 8,674 Depreciation and amortization 360 330 Earnings before interest and taxes $ 1,140 $ 996 Less interest 240 200 Pre-tax income $ 900 $ 796 Taxes (25%) 225 199 Net income available to common stockholders $ 675 $ 597 Common dividends $ 201 $ 200 Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars) 2020 2019 Assets Cash Short-term investments Accounts receivable Inventories Total current assets Net plant and equipment Total assets $ 450 230 2,750 1,750 $5,180 3,750 $ 400 200 2,500 1,500 $4,600 3,500 OQDA D 368 900 Module 2 - End of Chapter Assignment Chapter 02/ Chapter 03 Llabilities and Equity Accounts payable $ 900 $ 800 Accruals 450 400 Notes payable 200 Total current liabilities $1,718 $1,400 Long-term debt 800 Total liabilities $2,618 2,200 Common stock 4,538 4,600 Retained earnings 1,774 1,300 Total common equity $6,312 $5,900 Total liabilities and equity $8.930 58,100 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 ander 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 si million should be entered as 1. not 1,000,000. Round your answers to the nearest whole number Full Book 2020: 5 million $ 2019: 5 million 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 e 2 - End of Chapter Assignment Chapter 02/ Chapter 03 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: 5 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 $ e. What is the ROIC for 2020? Round your answer to two decimal places. million 1. 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 not purchases of short-term investments? (Hint: Remember that a net use can be negative.) Er 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 Full Book Repurchase (Issue) stock $ million Purchase (Sale) of short-term investments $ million
