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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 paymentMillion dollars
Decrease (increase) in debtMillion dollars
dividend paymentMillion dollars
Repurchase (Issue) stockMillion dollars
Buying (Selling) of short-term investmentsMillion dollars
Free Cash Flow




(All dollar values are in millions.)




2018


2017
Sales, ST Invest, Notes Pay, LT Debt factor increase1.25

Sales$6,500
Operating costs as a percentage of sales%75.00

Cash as a percentage of sales%1.00
Cash factor increase1.25

Reccts Rec as % of sales%12.00
Accounts. Rec factor increase1.20

Inventory as a percentage of sales%15.00
Stock factor increase1.20

Net Plant & Equipment as a percentage of sales%28.00
Net Install and Equip factor increase1.15

Accounts Pay as a percentage of sales%6.00
Accounts Pay factor increase1.25

Accruals as a Percentage of Sales%4.00
Accrual factor increase1.10







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-factor1.50






Income statement:2018
2017

Sales$8,125.0
6.500,0 $

Operating costs excluding depreciation6.093,8
5.525.0

Depreciation and amortization209.3
182.0

Earnings excluding interest and taxes1.822,0 $
793,0 $

less attention174.7
139.8

income before tax$1,647.3 dollars
653,3 $

taxes658.9
261.3

Net income available to ordinary shareholders988,4 $
$392.0

ordinary dividends$889.5
$313.6







Balance sheets:2018
2017

assets




in advance81.3 dollars
65,0 $

short term investments40.6
32.5

Accounts receivable936.0
780.0

stocks1.170.0
975.0

Total current assets2.227,9 $
$1,852.5

Network facility and equipment2.093,0
1.820.0

Total assets$4,320.9
$3,672.5







Obligation and egalitarianism




Accounts payable487,5 $
390,0 $

accruals286.0
260.0

Notes payable162.5
130.0

Total current responsibilities936,0 $
780,0 $

long-term debt1.625.0
1.300.0

Total liabilities2.561,0 $
2.080,0 $

stock1.543,5
1.474,9

Retained earnings216.4
117.6

Total common capital1.759,9 $
$1,592.5

Total liabilities and equity4.320,9 $
$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. 1. What is the net operating profit after tax (NOPAT) for 2018?

  2. 2. What are the net working capital amounts for both years? 

    2018 million dollars

    2017 million dollars

  3. 3. What are the total net working capital amounts for both years? 

    2018 million dollars

    2017 million dollars

  4. 4. What is free cash flow for 2018? 

    Million dollars

  5. 5. What is ROIC for 2018?

    %

  6. 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? 

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