***URGENT***

PLEASE SHOW WORK AND FILL IN THE BLANKS

Chapter 6 - Problem 12: Enter your formula for Operating Current Liabilities exactly as it appears in cell H12.

6-12 Free Cash Flows Using Rhodes Corporation's financial statements (shown below), answer the following questions. a. What is the net operating profit after taxes (NOPAT) for 2015? h. What are the amounts of net operating working capital for both years? c. What are the amounts of total net operating capital for both years? d. What is the free cash flow for 2015? e. What is the ROIC for 2015? 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.) 2015 Rhodes Corporation Income Statements for Year Ending December 31 (Millions of Dollars) 2014 Sales $11,000 $10,000 Operating costs excluding depreciation 9,360 8,500 Depreciation and amortization 380 369 Earnings before interest and taxes $ 1,260 $ 1,140 Less interest 120 100 Pre-tax income $ 1,140 $ 1,040 Taxes (40%) 456 416 Net income available to common stockholders $ 684 $ 624 Common dividends $ 220 $ 200 Rhodes Corporation: Balance Sheets as of December 31 (Millions of dollars) 2015 2014 $ 550 110 2,750 Assets Cash Short-term investments Accounts receivable Inventories Total current assets Net plant and equipment Total assets 1,650 $5,060 $ 500 100 2,500 1,500 $4,600 3.500 $8.100 3.850 $8.910 [Continued) Liabilities and Equity Accounts payable Accruals Notes payable Total current liabilities Long-term debt Total liabilities Common stock Retained earnings Total common equity Total liabilities and equity $1,100 550 384 $2,034 1.100 $3,134 4,312 1464 $5,776 $8,910 $1,000 500 200 $1,700 1,000 $2,700 4,400 1,000 $5,400 $8,100 Complete Income Statement and Balance Sheet calculations first! INPUT Tax rate 40.0% INCOME STATEMENT (millions of $) 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Sales Operating costs Depreciation EBIT Int. expense Pre-tax earnings Taxes (40%) Net income Common dividends 2015 2014 $ 11,000.0 $ 10,000.0 9,360.0 8,500.0 380.0 360.0 1,260.0 1,140.0 120.0 100.0 $ $ 220.0 $ 200.0 19 20 F H 1 OUTPUT 2015 NOPAT 2015 2014 Operating current assets Operating current liabilities Net operating working capital 2015 2014 Total net operating capital 2015 Free cash flow ROIC 2015 After-tax interest payment Reduction (increase) in debt Payment of dividends Repurchase (Issue) stock Purch. (Sale) of ST investments Total uses of FCF $ BALANCE SHEET ASSETS Cash Short-term Accounts receivable Inventories Total CA Net FA Total assets 2015 550.0 $ 110.0 2,750.0 1,650.0 2014 500.0 100.0 2,500.0 1,500.0 3,850.0 3,500.0 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 $ 2015 1,100.0 $ 550.0 384.0 2014 1,000.0 500.0 200.0 LIABILITIES AND EQUITY Accounts payable Accruals Notes payable Total CL Long-term debt Total liabilities Common stock Retained earnings Total common equity Total L&E 1,100.0 1,000.0 4,312.0 1,464.0 4,400.0 1,000.0 41 42 6-12 Free Cash Flows Using Rhodes Corporation's financial statements (shown below), answer the following questions. a. What is the net operating profit after taxes (NOPAT) for 2015? h. What are the amounts of net operating working capital for both years? c. What are the amounts of total net operating capital for both years? d. What is the free cash flow for 2015? e. What is the ROIC for 2015? 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.) 2015 Rhodes Corporation Income Statements for Year Ending December 31 (Millions of Dollars) 2014 Sales $11,000 $10,000 Operating costs excluding depreciation 9,360 8,500 Depreciation and amortization 380 369 Earnings before interest and taxes $ 1,260 $ 1,140 Less interest 120 100 Pre-tax income $ 1,140 $ 1,040 Taxes (40%) 456 416 Net income available to common stockholders $ 684 $ 624 Common dividends $ 220 $ 200 Rhodes Corporation: Balance Sheets as of December 31 (Millions of dollars) 2015 2014 $ 550 110 2,750 Assets Cash Short-term investments Accounts receivable Inventories Total current assets Net plant and equipment Total assets 1,650 $5,060 $ 500 100 2,500 1,500 $4,600 3.500 $8.100 3.850 $8.910 [Continued) Liabilities and Equity Accounts payable Accruals Notes payable Total current liabilities Long-term debt Total liabilities Common stock Retained earnings Total common equity Total liabilities and equity $1,100 550 384 $2,034 1.100 $3,134 4,312 1464 $5,776 $8,910 $1,000 500 200 $1,700 1,000 $2,700 4,400 1,000 $5,400 $8,100 Complete Income Statement and Balance Sheet calculations first! INPUT Tax rate 40.0% INCOME STATEMENT (millions of $) 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Sales Operating costs Depreciation EBIT Int. expense Pre-tax earnings Taxes (40%) Net income Common dividends 2015 2014 $ 11,000.0 $ 10,000.0 9,360.0 8,500.0 380.0 360.0 1,260.0 1,140.0 120.0 100.0 $ $ 220.0 $ 200.0 19 20 F H 1 OUTPUT 2015 NOPAT 2015 2014 Operating current assets Operating current liabilities Net operating working capital 2015 2014 Total net operating capital 2015 Free cash flow ROIC 2015 After-tax interest payment Reduction (increase) in debt Payment of dividends Repurchase (Issue) stock Purch. (Sale) of ST investments Total uses of FCF $ BALANCE SHEET ASSETS Cash Short-term Accounts receivable Inventories Total CA Net FA Total assets 2015 550.0 $ 110.0 2,750.0 1,650.0 2014 500.0 100.0 2,500.0 1,500.0 3,850.0 3,500.0 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 $ 2015 1,100.0 $ 550.0 384.0 2014 1,000.0 500.0 200.0 LIABILITIES AND EQUITY Accounts payable Accruals Notes payable Total CL Long-term debt Total liabilities Common stock Retained earnings Total common equity Total L&E 1,100.0 1,000.0 4,312.0 1,464.0 4,400.0 1,000.0 41 42