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The answer is there, please show the calculations. (2-19) FREE CASH FLOW Using Rhodes Corporation's financial statements (shown below), answer the following questions. a. What
The answer is there, please show the calculations.
(2-19) FREE CASH FLOW Using Rhodes Corporation's financial statements (shown below), answer the following questions. a. What is the net operating profit after taxes (NOPAT) for 2021? Answer: NOPAT =$756 b. What are the amounts of net operating working capital for both years? Answer: NOWC=$3,300(2021);$3,000(2020) c. What are the amounts of total net operating capital for both years? Answer: Net operating capital =$7,150 (2021); $6,500 (2020) d. What is the free cash flow for 2021? Answer: Free cash flow =$106 e. What is the ROIC for 2021 ? Answer: ROIC=10.57% f. How much of the FCF did Rhodes use for each of the following purposes: aftertax interest, net debt repayments, dividends, net stock repurchases, and net purchases of short-term investments? (Hint: Remember that a net use can be negative.) Rhodes Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars) Answer: Net uses of FCF =$106Step by Step Solution
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