In: Accounting
Free Cash Flows
Rhodes Corporation: Income Statements for Year Ending December 31 (Millions of Dollars)
2016 | 2015 | ||
Sales | $10,400.0 | $8,000.0 | |
Operating costs excluding depreciation | 8,320.0 | 6,800.0 | |
Depreciation and amortization | 264.0 | 240.0 | |
Earnings before interest and taxes | $1,816.0 | $960.0 | |
Less: Interest | 224.0 | 172.0 | |
Pre-tax income | $1,592.0 | $788.0 | |
Taxes (40%) | 636.8 | 315.2 | |
Net income available to common stockholders | $955.2 | $472.8 | |
Common dividends | $860.0 | $378.0 |
Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars)
2016 | 2015 | ||
Assets | |||
Cash | $140.0 | $112.0 | |
Short-term investments | 52.0 | 40.0 | |
Accounts receivable | 1,232.0 | 1,120.0 | |
Inventories | 1,632.0 | 1,360.0 | |
Total current assets | $3,056.0 | $2,632.0 | |
Net plant and equipment | 2,640.0 | 2,400.0 | |
Total assets | $5,696.0 | $5,032.0 | |
Liabilities and Equity | |||
Accounts payable | $1,040.0 | $800.0 | |
Accruals | 828.0 | 720.0 | |
Notes payable | 208.0 | 160.0 | |
Total current liabilities | $2,076.0 | $1,680.0 | |
Long-term bonds | 2,080.0 | 1,600.0 | |
Total liabilities | $4,156.0 | $3,280.0 | |
Common stock | 1,302.8 | 1,610.0 | |
Retained earnings | 237.2 | 142.0 | |
Total common equity | $1,540.0 | $1,752.0 | |
Total liabilities and equity | $5,696.0 | $5,032.0 |
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 $1.2
million should be entered as 1.2, not 1,200,000. Round your answer
to one decimal place.
$ ____ million
What are the amounts of net operating working capital for both
years? Enter your answer in millions. For example, an answer of
$1.2 million should be entered as 1.2, not 1,200,000. Round your
answers to one decimal place.
2016 $ ____ million
2015 $ ____ million
What are the amounts of total net operating capital for both
years? Enter your answer in millions. For example, an answer of
$1.2 million should be entered as 1.2, not 1,200,000. Round your
answers to one decimal place.
2016 $ __ million
2015 $ __ million
What is the free cash flow for 2016? Enter your answer in
millions. For example, an answer of $1.2 million should be entered
as 1.2, not 1,200,000. Round your answer to one decimal
place.
$ ___ million
What is the ROIC for 2016? 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? (Hint:Remember that a net use can be negative.) Enter your answer in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000. Round your answers to one decimal 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 |