ree Cash Flows

Rhodes Corporation$$s financial statements are shown below.

Rhodes Corporation: Income Statements for Year Ending December $31$

$($Millions of Dollars$)$

$20202019$

Sales $ $11,000$ $ $10,000$

Operating costs excluding depreciation $9,5768,686$

Depreciation and amortization $360350$

Earnings before interest and taxes $ $1,064$ $ $964$

Less interest $140100$

Pre$-$tax income $ $924$ $ $864$

Taxes $(25\%)231216$

Net income available to common stockholders $ $693$ $ $648$

Common dividends $ $204$ $ $200$

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

$20202019$

Assets

Cash $ $450$ $ $400$

Short$-$term investments $120100$

Accounts receivable $2,7502,500$

Inventories $2,0501,800$

Total current assets $ $5,370$ $ $4,800$

Net plant and equipment $3,6503,500$

Total assets $ $9,020$ $ $8,300$

Liabilities and Equity

Accounts payable $ $900$ $ $800$

Accruals $450400$

Notes payable $180100$

Total current liabilities $ $1,530$ $ $1,300$

Long$-$term debt $900800$

Total liabilities $ $2,4302,100$

Common stock $5,1015,200$

Retained earnings $1,4891,000$

Total common equity $ $6,590$ $ $6,200$

Total liabilities and equity $ $9,020$ $ $8,300$

Suppose the federal$-$plus$-$state tax corporate tax is $25\%.$ Answer the following questions.

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.

$

$798$

million

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.

$2020$: $

$3900$

million

$2019$: $

$3500$

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.

$2020$: $

$7550$

million

$2019$: $

$7000$

million

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.

$

$248$

million

What is the ROIC for $2020?$ Round your answer to two decimal places.

$10\mathrm{.}56$

$\%$

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 $

$84$

million

Reduction $($increase$)$ in debt $

$100$

million

Payment of dividends $

$4$

million

Repurchase $($Issue$)$ stock $

$-99$

million

Purchase $($Sale$)$ of short$-$term investments $

$20$

millio