Please explain how to solve the following:

Free Cash Flows

Rhodes Corporation's financial statements are shown below.

Rhodes Corporation: Income Statements for Year Ending December 31

(Millions of Dollars)

Year 2020 Year 2019

Sales $13,000 $11,000

Operating costs excluding depreciation $11,540 $9,646

Depreciation and amortization $400 $390

Earnings before interest and taxes $1,060 $964

Less interest $280 $200

Pre-tax income $780 $764

Taxes (25%) $195 $191

Net income available to common stockholders $585 $573

Common dividends $203 $200

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

2020 2019

AssetsCash $650 $600

Short-term investments $110 $100

Accounts receivable $2,750 $2,500

Inventories $1,450 $1,400

Total current assets $4,960 $4,600

Net plant and equipment $3,650 $3,500

Total assets $8,610 $8,100

Liabilities and EquityAccounts payable $1,300 $1,200

Accruals $650 $600

Notes payable $384 $200

Total current liabilities $2,334 $2,000

Long-term debt $1,300 $1,200

Total liabilities $3,634 $3,200

Common stock $3,494 $3,800

Retained earnings $1,482 $1,100

Total common equity $4,976 $4,900

Total liabilities and equity $8,610 $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.

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