Using Rhodes Corporations financial statements (shown below), answer the following questions. 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.) 2010 2009

Sales $11,000 $10,000

Operating costs excluding Depreciation 9,360 8,500

Decpreciation 380 360

Earnings before interest and taxes

$1,260 $1,140 Less Interest 120 100

Earnings before taxes $1,140 $1,040

Taxes 40% 456 416

Net income available to common stockholders 684 624

Common dividends 220 220

2010 2009

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 & Equipment 3,850 3,500

Total Assets $8,910 $8,100