Problems 12-17 2-12 Using Rhodes Corporation's financial statements (shown below), answer the following Free Cash Flow questions. a. What is the net operating profit after taxes (NOPAT) for 2015? b. What are the amounts of net operating working capital for both years? C. What are the amounts of total net operating capital for both years? d. What is the free cash flow for 2015? e. What is the ROIC for 2015? 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.) Rhodes Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) NEL Sales Operating costs excluding depreciation Depreciation and amortization Earnings before interest and taxes Less interest Pre-tax income Taxes (40%) Net income available to common shareholders Common dividends 2015 $11,000 2014 $10,000 9,360 8,500 380 360 1,260 1,140 120 100 1,140 1,040 456 416 $ 684 $ 624 $ 220 $ 200 opyright 2017 Nelson Education Ltd. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content y be suppressed from the eBook and/or eChapter(s). Nelson Education reserves the right to remove additional content at any time if subsequent rights restrictions require it. Chapter 2 Financial Statements, Cash Flow, and Taxes Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars) 2015 2014 Assets Cash $ 550 $ 500 Short-term investments 110 100 Accounts receivable 2,750 2,500 Inventories 1,650 1,500 Total current assets 5,060 4,600 Net plant and equipment 3,850 3,500 Total assets $ 8,910 $ 8,100 Liabilities and Equity Accounts payable Accruals Notes payable Total current liabilities Long-term debt Total liabilities Common stock (120 million shares) Retained earnings Total common equity Total liabilities and equity Price per share WACC $ 1,100 $ 1,000 550 500 384 200 2,034 1,700 1,100 1,000 3,134 2,700 4,312 4,400 1,464 1,000 5,776 5,400 $ 8,910 $ 8,100 $ 60 $ 55 12% 12%