Question
Using Rhodes Corporations financial statement (see below), anwser the following questions and show work. I was provided answer but must show exact supporting work!!! QUESTION
Using Rhodes Corporations financial statement (see below), anwser the following questions and show work. I was provided answer but must show exact supporting work!!!
QUESTION
How much of the FCF did Rhodes use for each of the following purposes: after tax interest, net debt repyment, dividends, net stock repurchases and net short term investments? Hint remember that a net use can be negative. The answers are in Millions:
A-T int. = 72 m
inc in debt = 284 m
Div = 220 m
Rep stoc = 88 mil
purch ST inv = 10 M
SHOW ALL WORK
Rhodes Corporations Income Statements in Millions of Dollars
2013 2012
Sales 11,000 10,000
OPerating costs excluding depreciation 9,360 8,500
Depreciation and amoritization 380 360
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 aqvailable to common shockholders 684 624
common dividends 220 200
Rhodes Corporation Balance Sheet in Million of Dollars
2013 2012
Assets
Cash 550 500
Short Term Investments 110 100
Accounts Receivable 2,750 2,500
Inventories 1,650 1,500
Total Current Assets 5,060 4,600
Net Plant and Equipment 3,850 3,500
Total Assets 8,910 8,100
Liabilities and Equity
Accounts Payable 1,100 1,000
Accurals 500 500
Notes Payable 384 200
Total Current Liabilitis 2,034 1,700
Long term debt 1,100 1,000
total liabilities 3,134 2,700
common stock 4,312 4,400
retained earnings 1,464 1,000
Total common equity 5,776 5,400
Total Liabilities and equity 8,910 8,100
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started