Rhodes Corporations financial statements are shown below Rhodes Corporation Income Statements for Year Ending December 31 (Millions of Dollars) 2020 2019 Sales $ 12,000 $ 10,000 Operating costs excluding depreciation 10,642 8,770 Depreciation and amortization 330 310 Earnings before interest and taxes $ 1,028 $ 920 Less interest 180 100 Pre tax income $ 848 $ 820 Taxes (25 ) 212 205 Net income available to common stockholders $ 636 $ 615 Common dividends $ 201 $ 200 Rhodes Corporation Balance Sheets as of December 31 (Millions of Dollars) 2020 2019 Assets Cash $ 550 $ 500 Short term investments 220 200 Accounts receivable 2,750 2,500 Inventories 1,950 1,700 Total current assets $ 5,470 $ 4,900 Net plant and equipment 3,750 3,500 Total assets $ 9,220 $ 8,400 Liabilities and Equity Accounts payable $ 1,100 $ 1,000 Accruals 550 500 Notes payable 188 100 Total current liabilities $ 1,838 $ 1,600 Long term debt 1,100 1,000 Total liabilities $ 2,938 2,600 Common stock 4,747 4,700 Retained earnings 1,535 1,100 Total common equity $ 6,282 $ 5,800 Total liabilities and equity $ 9,220 $ 8,400 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 $ 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 $ million 2019 $ 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 $ million 2019 $ 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 $ million What is the ROIC for 2020 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 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

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Oct 03, 2024

Rhodes Corporations financial statements are shown below. Rhodes Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) 2020 2019 Sales $ 12,000 $

Rhodes Corporations financial statements are shown below.

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

	2020		2019
Sales	$	12,000	$	10,000
Operating costs excluding depreciation		10,642		8,770
Depreciation and amortization		330		310
Earnings before interest and taxes	$	1,028	$	920
Less interest		180		100
Pre-tax income	$	848	$	820
Taxes (25%)		212		205
Net income available to common stockholders	$	636	$	615
Common dividends	$	201	$	200

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

	2020		2019
Assets
Cash	$	550	$	500
Short-term investments		220		200
Accounts receivable		2,750		2,500
Inventories		1,950		1,700
Total current assets	$	5,470	$	4,900
Net plant and equipment		3,750		3,500
Total assets	$	9,220	$	8,400

Liabilities and Equity
Accounts payable	$	1,100	$	1,000
Accruals		550		500
Notes payable		188		100
Total current liabilities	$	1,838	$	1,600
Long-term debt		1,100		1,000
Total liabilities	$	2,938		2,600
Common stock		4,747		4,700
Retained earnings		1,535		1,100
Total common equity	$	6,282	$	5,800
Total liabilities and equity	$	9,220	$	8,400

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.
$ 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: $ million

2019: $ 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: $ million

2019: $ 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.
$ million
What is the ROIC for 2020? 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 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