Reference no: EM132730496
Question - Rhodes Corporation's financial statements are shown below.
Rhodes Corporation: Income Statements for Year Ending December 31 (Millions of Dollars)
2020 2019
Sales $11,000 $10,000
Operating costs excluding depreciation 9,578 8,692
Depreciation and amortization 350 320
Earnings before interest and taxes $1,072 $988
Less interest 220 200
Pre-tax income $852 $788
Taxes (25%) 213 197
Net income available to common stockholders $639 $591
Common dividends $205 $200
Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars)
2020 2019
Assets
Cash $650 $600
Short-term investments 210 200
Accounts receivable 2,750 2,500
Inventories 1,350 1,200
Total current assets $4,960 $4,500
Net plant and equipment 3,650 3,500
Total assets $8,610 $8,000
Liabilities and Equity
Accounts payable $1,300 $1,200
Accruals 650 600
Notes payable 194 100
Total current liabilities $2,144 $1,900
Long-term debt 1,300 1,200
Total liabilities $ 3,444 3,100
Common stock 3,532 3,700
Retained earnings 1,634 1,200
Total common equity $5,166 $4,900
Total liabilities and equity $8,610 $8,000
Suppose the federal-plus-state tax corporate tax is 25%. Answer the following questions.
Required -
What is the net operating profit after taxes (NOPAT) for 2020?
What are the amounts of net operating working capital for both years?
What are the amounts of total net operating capital for both years?
What is the free cash flow for 2020? Enter your answer in millions.
What is the ROIC for 2020? Round your answer to two decimal places.
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?