Question
Rhodes Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) 2016 2015 Sales $4,400.0 $4,000.0 Operating costs excluding depreciation 3,740.0 3,400.0 Depreciation and
Rhodes Corporation: Income Statements for Year Ending December 31 (Millions of Dollars)
2016 | 2015 | ||
Sales | $4,400.0 | $4,000.0 | |
Operating costs excluding depreciation | 3,740.0 | 3,400.0 | |
Depreciation and amortization | 135.0 | 108.0 | |
Earnings before interest and taxes | $525.0 | $492.0 | |
Less Interest | 95.0 | 86.0 | |
Pre-tax income | $430.0 | $406.0 | |
Taxes (40%) | 172.0 | 162.4 | |
Net income available to common stockholders | $258.0 | $243.6 | |
Common dividends | $232.0 | $195.0 |
Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars)
2016 | 2015 | ||
Assets | |||
Cash | $67.0 | $56.0 | |
Short-term investments | 22.0 | 20.0 | |
Accounts receivable | 750.0 | 600.0 | |
Inventories | 1,040.0 | 800.0 | |
Total current assets | $1,879.0 | $1,476.0 | |
Net plant and equipment | 1,350.0 | 1,080.0 | |
Total assets | $3,229.0 | $2,556.0 | |
Liabilities and Equity | |||
Accounts payable | $288.0 | $240.0 | |
Accruals | 260.0 | 200.0 | |
Notes payable | 88.0 | 80.0 | |
Total current liabilities | $636.0 | $520.0 | |
Long-term debt | 880.0 | 800.0 | |
Total liabilities | $1,516.0 | $1,320.0 | |
Common stock | 1,614.0 | 1,163.0 | |
Retained earnings | 99.0 | 73.0 | |
Total common equity | $1,713.0 | $1,236.0 | |
Total liabilities and equity | $3,229.0 | $2,556.0 |
a. What is the net operating profit after taxes (NOPAT) for 2016? 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 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. 2016 $ million 2015 $ million
c. What are the amounts of total net operating capital for both years? 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. 2016 $ million 2015 $ million
d. What is the free cash flow for 2016? 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
- What is the ROIC for 2016? Round your answer to two decimal places. %
- 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 | $ million |
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