Rhodes Corporation: Income Statements for Year Ending
December 31 (Millions of Dollars)
|
2018 |
|
2017 |
Sales |
$2,200.0 |
|
$2,000.0 |
Operating costs excluding depreciation |
1,870.0 |
|
1,700.0 |
Depreciation and amortization |
55.0 |
|
50.0 |
Earnings before interest and taxes |
$275.0 |
|
$250.0 |
Less Interest |
47.0 |
|
43.0 |
Pre-tax income |
$228.0 |
|
$207.0 |
Taxes (40%) |
91.2 |
|
82.8 |
Net income available to common stockholders |
$136.8 |
|
$124.2 |
Common dividends |
$123.0 |
|
$99.0 |
Rhodes Corporation: Balance Sheets as of December 31
(Millions of Dollars)
|
2018 |
|
2017 |
Assets |
Cash |
$30.0 |
|
$26.0 |
Short-term investments |
11.0 |
|
10.0 |
Accounts receivable |
345.0 |
|
300.0 |
Inventories |
437.0 |
|
380.0 |
Total current assets |
$823.0 |
|
$716.0 |
Net plant and equipment |
550.0 |
|
500.0 |
Total assets |
$1,373.0 |
|
$1,216.0 |
Liabilities and Equity |
Accounts payable |
$144.0 |
|
$120.0 |
Accruals |
88.0 |
|
80.0 |
Notes payable |
44.0 |
|
40.0 |
Total current liabilities |
$276.0 |
|
$240.0 |
Long-term debt |
440.0 |
|
400.0 |
Total liabilities |
$716.0 |
|
$640.0 |
Common stock |
605.2 |
|
538.0 |
Retained earnings |
51.8 |
|
38.0 |
Total common equity |
$657.0 |
|
$576.0 |
Total liabilities and equity |
$1,373.0 |
|
$1,216.0 |
Using Rhodes Corporation's financial statements (shown above),
answer the following questions.
- What is the net operating profit after taxes (NOPAT) for 2018?
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 answers in millions. For example, an answer of $1
million should be entered as 1, not 1,000,000. Round your answers
to the nearest whole number.
2018: $ million
2017: $ million
- What are the amounts of total net operating capital for both
years? Enter your answers in millions. For example, an answer of $1
million should be entered as 1, not 1,000,000. Round your answers
to the nearest whole number.
2018: $ million
2017: $ million
- What is the free cash flow for 2018? Enter your answer in
millions. For example, an answer of $1.2 million should be entered
as 1.2, not 1,200,000. Cash outflow, if any, should be indicated by
a minus sign. Round your answer to one decimal place.
$ million
- What is the ROIC for 2018? 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 |
|