Free Cash Flows Rhodes Corporation: Income Statements for Year EndingDecember 31 (Millions of Dollars) | 2016 | | 2015 | Sales | $6,900.0 | | $6,000.0 | Operating costs excluding depreciation | 5,175.0 | | 5,100.0 | Depreciation and amortization | 151.0 | | 126.0 | Earnings before interest and taxes | $1,574.0 | | $774.0 | Less Interest | 148.0 | | 129.0 | Pre-tax income | $1,426.0 | | $645.0 | Taxes (40%) | 570.4 | | 258.0 | Net income available to common stockholders | $855.6 | | $387.0 | Common dividends | $770.0 | | $310.0 |
Rhodes Corporation: Balance Sheets as of December 31(Millions of Dollars) | 2016 | | 2015 | Assets | Cash | $72.0 | | $60.0 | Short-term investments | 35.0 | | 30.0 | Accounts receivable | 1,050.0 | | 840.0 | Inventories | 1,518.0 | | 1,380.0 | Total current assets | $2,675.0 | | $2,310.0 | Net plant and equipment | 1,512.0 | | 1,260.0 | Total assets | $4,187.0 | | $3,570.0 | Liabilities and Equity | Accounts payable | $414.0 | | $360.0 | Accruals | 621.0 | | 540.0 | Notes payable | 138.0 | | 120.0 | Total current liabilities | $1,173.0 | | $1,020.0 | Long-term debt | 1,380.0 | | 1,200.0 | Total liabilities | $2,553.0 | | $2,220.0 | Common stock | 1,432.4 | | 1,234.0 | Retained earnings | 201.6 | | 116.0 | Total common equity | $1,634.0 | | $1,350.0 | Total liabilities and equity | $4,187.0 | | $3,570.0 |
Using Rhodes Corporation's financial statements (shown above),answer the following questions. - What is the net operating profit after taxes (NOPAT) for 2016?Enter your answer in millions. For example, an answer of $1.2million should be entered as 1.2, not 1,200,000. Round your answerto one decimal place.
$ million
- What are the amounts of net operating working capital for bothyears? Enter your answer in millions. For example, an answer of$1.2 million should be entered as 1.2, not 1,200,000. Round youranswers to one decimal place.
2016 $ million 2015 $ million
- What are the amounts of total net operating capital for bothyears? Enter your answer in millions. For example, an answer of$1.2 million should be entered as 1.2, not 1,200,000. Round youranswers to one decimal place.
2016 $ million 2015 $ million
- What is the free cash flow for 2016? Enter your answer inmillions. For example, an answer of $1.2 million should be enteredas 1.2, not 1,200,000. Round your answer to one decimalplace.
$ million
- What is the ROIC for 2016? Round your answer to two decimalplaces.
%
- How much of the FCF did Rhodes use for each of the followingpurposes: after-tax interest, net debt repayments, dividends, netstock repurchases, and net purchases of short-term investments?(Hint: Remember that a net use can be negative.) Enteryour answer in millions. For example, an answer of $1.2 millionshould be entered as 1.2, not 1,200,000. Round your answers to onedecimal place.
After-tax interest payment | $ million | Reduction (increase) in debt | $ million | Payment of dividends | $ million | Repurchase (Issue) stock | $ million | Purchase (Sale) of short-term investments | $ million |
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