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.

1. What is the ROIC for 2016? Round your answer to two decimalplaces.
   ________ %
   
2. 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