Question
USE Table Below , questions are all relevant to same problem so not too long. What is the net operating profit after taxes (NOPAT) for
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USE Table Below , questions are all relevant to same problem so not too long.
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What is the net operating profit after taxes (NOPAT) for 2018? Enter your answer in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000. Do not round intermediate calculations. Round your answer to one decimal place.
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$ million
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What are the amounts of net operating working capital for both years? Enter your answers in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000. Do not round intermediate calculations. Round your answers to one decimal place.
2018 $ million
2017 $ million
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What are the amounts of total net operating capital for both years? Enter your answers in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000. Do not round intermediate calculations. Round your answers to one decimal place.
2018 $ million
2017 $ million
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What is the free cash flow for 2018? Enter your answer in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000. Do not round intermediate calculations. Round your answer to one decimal place.
$ million
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What is the ROIC for 2018? Round your answer to one decimal places.
%
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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 $1.2 million should be entered as 1.2, not 1,200,000. Do not round intermediate calculations. Round your answers to one decimal place.
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
USE Table Below , questions are all relevant to same problem so not too long.
What is the net operating profit after taxes (NOPAT) for 2018? Enter your answer in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000. Do not round intermediate calculations. Round your answer to one decimal place.
$ million
What are the amounts of net operating working capital for both years? Enter your answers in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000. Do not round intermediate calculations. Round your answers to one decimal place.
2018 $ million
2017 $ million
What are the amounts of total net operating capital for both years? Enter your answers in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000. Do not round intermediate calculations. Round your answers to one decimal place.
2018 $ million
2017 $ million
What is the free cash flow for 2018? Enter your answer in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000. Do not round intermediate calculations. Round your answer to one decimal place.
$ million
What is the ROIC for 2018? Round your answer to one 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 $1.2 million should be entered as 1.2, not 1,200,000. Do not round intermediate calculations. Round your answers to one decimal place.
| 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 |
| Free Cash Flows | |||||
| (All dollar values are provided in millions.) | |||||
| 2018 | 2017 | ||||
| Sales, ST Invest, Notes Pay, LT Debt factor increase | 1.25 | Sales | $6,500 | ||
| Operating costs as % of sales | 75.00% | Cash as % of sales | 1.00% | ||
| Cash factor increase | 1.25 | Accts Rec as % of sales | 12.00% | ||
| Accts. Rec factor increase | 1.20 | Inventory as % of sales | 15.00% | ||
| Inventory factor increase | 1.20 | Net Plant & Equip as % of sales | 28.00% | ||
| Net Plant & Equip factor increase | 1.15 | Accts Pay as % of sales | 6.00% | ||
| Accts Pay factor increase | 1.25 | Accruals as % of Sales | 4.00% | ||
| Accruals factor increase | 1.10 | ||||
| Operating cost as % of sales | 85.00% | ||||
| Depreciation as % of Net Plant & Equip | 10.00% | Depreciation as % of Net Plant & Equip | 10.00% | ||
| Interest rate | 10.00% | Interest rate | 10.00% | ||
| Tax rate | 40.00% | Tax rate | 40.00% | ||
| Payout rate | 90.00% | Payout rate | 80.00% | ||
| Short-term investments as % of sales | 0.50% | ||||
| Notes payable as % of sales | 2.00% | ||||
| Long-term debt as % of sales | 20.00% | ||||
| Retained earnings multiple factor | 1.50 | ||||
| Income Statements: | 2018 | 2017 | |||
| Sales | $8,125.0 | $6,500.0 | |||
| Operating costs excluding depreciation | 6,093.8 | 5,525.0 | |||
| Depreciation and amortization | 209.3 | 182.0 | |||
| Earnings before interest and taxes | $1,822.0 | $793.0 | |||
| Less interest | 174.7 | 139.8 | |||
| Pre-tax income | $1,647.3 | $653.3 | |||
| Taxes | 658.9 | 261.3 | |||
| Net income available to common stockholders | $988.4 | $392.0 | |||
| Common dividends | $889.5 | $313.6 | |||
| Balance Sheets: | 2018 | 2017 | |||
| Assets | |||||
| Cash | $81.3 | $65.0 | |||
| Short-term investments | 40.6 | 32.5 | |||
| Accounts receivable | 936.0 | 780.0 | |||
| Inventories | 1,170.0 | 975.0 | |||
| Total current assets | $2,227.9 | $1,852.5 | |||
| Net plant and equipment | 2,093.0 | 1,820.0 | |||
| Total assets | $4,320.9 | $3,672.5 | |||
| Liabilities and Equity | |||||
| Accounts payable | $487.5 | $390.0 | |||
| Accruals | 286.0 | 260.0 | |||
| Notes payable | 162.5 | 130.0 | |||
| Total current liabilities | $936.0 | $780.0 | |||
| Long-term debt | 1,625.0 | 1,300.0 | |||
| Total liabilities | $2,561.0 | $2,080.0 | |||
| Common stock | 1,543.5 | 1,474.9 | |||
| Retained earnings | 216.4 | 117.6 | |||
| Total common equity | $1,759.9 | $1,592.5 | |||
| Total liabilities and equity | $4,320.9 | $3,672.5 | |||
| FORMULAS | |||||
| NOPAT2018 | #N/A | ||||
| NOWC2018 | #N/A | ||||
| NOWC2017 | #N/A | ||||
| Total net operating capital2018 | #N/A | ||||
| Total net operating capital2017 | #N/A | ||||
| Free cash flow2018 | #N/A | ||||
| ROIC2018 | #N/A | ||||
| Uses of free cash flow: | |||||
| After-tax interest payment | #N/A | ||||
| Reduction (increase) in debt | #N/A | ||||
| Payment of dividends | #N/A | ||||
| Repurchase (issue) stock | #N/A | ||||
| Purchase (sale) of short-term investments | #N/A | ||||
| Total | #N/A |
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Cost And Management Accounting
Authors: Colin Drury
9th Edition
1473749050, 978-1473749054
