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Pictures may be blurry, but if you open in a different tab you should be able to see them clearly Rhodes Corporation: Income Statements for
Pictures may be blurry, but if you open in a different tab you should be able to see them clearly
Rhodes Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) 7,650.0 2018 2017 Sales $10,200.0 $8,500.0 Operating costs excluding depreciation 7,225.0 Depreciation and amortization 287.0 230.0 Earnings before interest and taxes $2,263.0 $1,045.0 Less Interest 183.0 Pre-tax income $2,044.0 $862.0 Taxes (40%) 817.6 344.8 Net income available to common stockholders $1,226.4 $517.2 Common dividends $1,104.0 $414.0 Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars) 219.0 2018 2017 Assets Cash $155.0 $119.0 Short-term investments 52.0 43.0 Accounts receivable 1,029.0 935.0 Inventories 2,151.0 1,955.0 Total current assets $3,387.0 $3,052.0 Net plant and equipment 2,869.0 2,295.0 Total assets $6,256.0 $5,347.0 Liabilities and Equity Accounts payable $918.0 $765.0 Accruals 374.0 340.0 Notes payable 204.0 170.0 Total current liabilities $1,496.0 $1,275.0 Long-term debt 2,040.0 1,700.0 Total liabilities $3,536.0 $2,975.0 Common stock 2,442.6 2,217.0 Retained earnings 277.4 155.0 Total common equity $2,720.0 $2,372.0 Total liabilities and equity $6,256.0 $5,347.0 Using Rhodes Corporation's financial statements (shown above), answer the following questions. a. What is the net operating profit after taxes (NOPAT) for 2018? Enter your answer in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000. Round your answer to one decimal place. $ 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. 2018: $ million 2017: $ 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. 2018: $ million 2017: $ million d. What is the free cash flow for 2018? Enter your answer in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000. Cash outflow, if any, should be indicated by a minus sign. Round your answer to one decimal place. $ million e. What is the ROIC for 2018? 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 answer in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000. Round your answers to one decimal place. After-tax interest payment $ million Reduction increase) in debt million Payment of dividends $ million Repurchase (Issue) stock $ million Purchase (Sale) of short-term investments S millionStep by Step Solution
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