Question
Use the Table below to solve the questions After-tax interest payment Million dollars Decrease (increase) in debt Million dollars dividend payment Million dollars Repurchase (Issue)
Use the Table below to solve the questions
After-tax interest payment | Million dollars |
Decrease (increase) in debt | Million dollars |
dividend payment | Million dollars |
Repurchase (Issue) stock | Million dollars |
Buying (Selling) of short-term investments | Million dollars |
Free Cash Flow | |||||
(All dollar values are in millions.) | |||||
2018 | 2017 | ||||
Sales, ST Invest, Notes Pay, LT Debt factor increase | 1.25 | Sales | $6,500 | ||
Operating costs as a percentage of sales | %75.00 | Cash as a percentage of sales | %1.00 | ||
Cash factor increase | 1.25 | Reccts Rec as % of sales | %12.00 | ||
Accounts. Rec factor increase | 1.20 | Inventory as a percentage of sales | %15.00 | ||
Stock factor increase | 1.20 | Net Plant & Equipment as a percentage of sales | %28.00 | ||
Net Install and Equip factor increase | 1.15 | Accounts Pay as a percentage of sales | %6.00 | ||
Accounts Pay factor increase | 1.25 | Accruals as a Percentage of Sales | %4.00 | ||
Accrual factor increase | 1.10 | ||||
Operating cost as a percentage of sales | %85.00 | ||||
Depreciation as % of Net Plant and Equipment | %10.00 | Depreciation as % of Net Plant and Equipment | %10.00 | ||
Interest rate | %10.00 | Interest rate | %10.00 | ||
Tax rate | %40.00 | Tax rate | %40.00 | ||
pay rate | %90.00 | pay rate | %80.00 | ||
Short-term investments as a percentage of sales | %0,50 | ||||
Notes payable as a percentage of sales | %2.00 | ||||
Long-term debt as a percentage of sales | %20.00 | ||||
Retained earnings multi-factor | 1.50 | ||||
Income statement: | 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 excluding interest and taxes | 1.822,0 $ | 793,0 $ | |||
less attention | 174.7 | 139.8 | |||
income before tax | $1,647.3 dollars | 653,3 $ | |||
taxes | 658.9 | 261.3 | |||
Net income available to ordinary shareholders | 988,4 $ | $392.0 | |||
ordinary dividends | $889.5 | $313.6 | |||
Balance sheets: | 2018 | 2017 | |||
assets | |||||
in advance | 81.3 dollars | 65,0 $ | |||
short term investments | 40.6 | 32.5 | |||
Accounts receivable | 936.0 | 780.0 | |||
stocks | 1.170.0 | 975.0 | |||
Total current assets | 2.227,9 $ | $1,852.5 | |||
Network facility and equipment | 2.093,0 | 1.820.0 | |||
Total assets | $4,320.9 | $3,672.5 | |||
Obligation and egalitarianism | |||||
Accounts payable | 487,5 $ | 390,0 $ | |||
accruals | 286.0 | 260.0 | |||
Notes payable | 162.5 | 130.0 | |||
Total current responsibilities | 936,0 $ | 780,0 $ | |||
long-term debt | 1.625.0 | 1.300.0 | |||
Total liabilities | 2.561,0 $ | 2.080,0 $ | |||
stock | 1.543,5 | 1.474,9 | |||
Retained earnings | 216.4 | 117.6 | |||
Total common capital | 1.759,9 $ | $1,592.5 | |||
Total liabilities and equity | 4.320,9 $ | $3,672.5 | |||
FORMULAS | |||||
NOPAT2018 | #NO | ||||
SHIMDIC2018 | #NO | ||||
SHIMDIC2017 | #NO | ||||
Total net working capital2018 | #NO | ||||
Total net working capital2017 | #NO | ||||
Free cash flow2018 | #NO | ||||
ROIC2018 | #NO | ||||
Uses of free cash flow: | |||||
After-tax interest payment | #NO | ||||
Decrease (increase) in debt | #NO | ||||
dividend payment | #NO | ||||
Repurchase (issue) stock | #NO | ||||
Buying (selling) short-term investments | #NO | ||||
Total | #NO |
1. What is the net operating profit after tax (NOPAT) for 2018?
2. What are the net working capital amounts for both years?
2018 million dollars
2017 million dollars
3. What are the total net working capital amounts for both years?
2018 million dollars
2017 million dollars
4. What is free cash flow for 2018?
Million dollars
5. What is ROIC for 2018?
%
6. How much of the FCF did Rhodes use for each of these purposes: after-tax interest, net debt repayments, dividends, net share repurchases, and net purchases of short-term investments?
Step by Step Solution
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Solution Based on the given data we can calculate the following 1 NOPAT2018 Operating Profit Depreci...Get Instant Access to Expert-Tailored Solutions
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