Question
Using Rhodes Corporations financial statements (shown below), answer the following questions. a. What is the net operating profit after taxes (NOPAT) for 2013? b. What
Using Rhodes Corporations financial statements (shown below), answer the following questions.
a. What is the net operating profit after taxes (NOPAT) for 2013?
b. 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 2013?
e. What is the ROIC for 2013?
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.)
2013 2012
Sales $11,000 $10,000
Operating costs excluding depreciation 9,360 8,500
Depreciation and amortization 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 available to common stockholders $ 684 $ 624
Common dividends $ 220 $ 200
Rhodes Corporation: Balance Sheets as of December 31 (Millions 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
Accruals 550 500
Notes payable 384 200
Total current liabilities $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
I mainly need E and F completed please
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