Problem 6-12 Free Cash Flows Rhodes Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) 2015 2014 $4,950.0 $4,500.0 3,825.0 122.0 $850.0$553.0 97.0 $744.0 $456.0 182.4 $273.6 $219.0 Sales Operating costs excluding depreciation Depreciation and amortization Earnings before interest and taxes 3,960.0 140.0 Less: Interest 106.0 Pre-tax income axes (40%) Net income available to common stockholders Common dividends 297.6 $446.4 $402.0 Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars) 2015 2014 Assets Cash Short-term investments Accounts receivable Inventories Total current assets Net plant and equipment Total assets Liabilities and Equity Accounts payable Accruals Notes payable Total current liabilities Long-term bonds Total liabilities Common stock Retained earnings Total common equity Total liabilities and equity $54.0 23.0 675.0 855.0 $1,862.0 $1,607.0 1,215.0 $3,259.0 $2,822.0 $68.0 25.0 743.0 1,026.0 1,397.0 $297.0$270.0 135.0 90.0 495.0 900.0 $1,562.0 $1,395.0 1,345.0 82.0 $1,697.0 $1,427.0 $3,259.0 $2,822.0 176.0 99.0 $572.0 990.0 1,570.6 126.4