Rhodes Corporation: Income Statements for Year Ending December 31 (Millions of Dollars)

	2020			2019
Sales	$	12,000		$	11,000
Operating costs excluding depreciation		10,520			9,674
Depreciation and amortization		380			350
Earnings before interest and taxes	$	1,100		$	976
Less interest		240			200
Pre-tax income	$	860		$	776
Taxes (25%)		215			194
Net income available to common stockholders	$	645		$	582
Common dividends	$	205		$	200

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

	2020			2019
Assets
Cash	$	450		$	400
Short-term investments		110			100
Accounts receivable		2,750			2,500
Inventories		1,350			1,200
Total current assets	$	4,660		$	4,200
Net plant and equipment		3,750			3,500
Total assets	$	8,410		$	7,700
Liabilities and Equity
Accounts payable	$	900		$	800
Accruals		450			400
Notes payable		356			200
Total current liabilities	$	1,706		$	1,400
Long-term debt		900			800
Total liabilities	$	2,606			2,200
Common stock		4,164			4,300
Retained earnings		1,640			1,200
Total common equity	$	5,804		$	5,500
Total liabilities and equity	$	8,410		$	7,700

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

net operating profit after taxes (NOPAT) for 2020 is 825million

amounts of net operating working capital for both years: 3200million (2020), 2900million (2019)

amounts of total net operating capital for both years: 6950million (2020), 6400million (2019)

a, 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.

$ _____ million

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

___ %

c, 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