Suppose the federal-plus-state tax corporate tax is 25%. Answer the following questions.
Rhodes Corporation's financial statements are shown below. Rhodes Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) 2020 2019 Sales $ 11,000 $ 10,000 Operating costs excluding depreciation 9,648 8,762 Depreciation and amortization 380 330 Earnings before interest and taxes $ 972 $ 908 Less interest 140 100 Pre-tax income $ 832 $ 808 Taxes (25%) 208 202 Net income available to common stockholders $ 624 $ 606 Common dividends $ 204 $ 200 Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars) 2020 2019 Assets Cash $ 450 $ 400 Short-term investments 230 200 Accounts receivable 2,750 2,500 Inventories 1,350 1,300 Total current assets $ 4,780 $ 4,400 Net plant and equipment 3,650 3,500 Total assets $ 8,430 $ 7,900 Liabilities and Equity Accounts payable $ 900 $ 800 Accruals 450 400 Notes payable 172 100 Total current liabilities $ 1,522 $1,300 Long-term debt 900 800 Total liabilities $ 2,422 2,100 Common stock 4,288 4,500 Retained earnings 1,720 1,300 Total common equity $ 6,008 $ 5,800 Total liabilities and equity $ 8,430 $ 7,900 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. $ million After-tax interest payment Reduction (increase) in debt $ million Payment of dividends $ million Repurchase (Issue) stock $ million Purchase (Sale) of short-term investments $ million
