S S Free Cash Flows Rhodes Corporation's 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 10,692 8,778 Depreciation and amortization 340 310 Earnings before interest and taxes 968 $ 912 Less interest 260 200 Pre-tax income 708 $ 712 Taxes (25%) 177 178 Net income available to common stockholders 531 $ 534 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 1,850 1,600 Total current assets $5,370 $ 4,800 Net plant and equipment 3,750 3,500 Total assets $9,120 $ 8,300 S Liabilities and Equity Accounts payable $ 1,100 $1,000 Accruals 550 500 Notes payable 186 100 Total current liabilities $ 1,836 $ 1,600 Long-term debt 1,100 1,000 Total liabilities $ 2,936 2,600 Common stock 4,954 4,800 Retained earnings 1,230 900 Total common equity $ 6,184 $ 5,700 Total liabilities and equity $ 9,120 $ 8,300 Suppose the federal-plus-state tax corporate tax is 25%. Answer the following questions. a. 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 b. 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 C. 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 d. 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 e. What is the ROIC for 2020? Round your answer to two decimal places. % 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.) 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
