Free Cash Flows Rhodes Corporation: Income Statements for Year Ending December 3
ID: 2382859 • Letter: F
Question
Free Cash Flows
Rhodes Corporation: Income Statements for Year Ending December 31 (Millions of Dollars)
Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars)
Using Rhodes Corporation's financial statements (shown above), answer the following questions.
What is the net operating profit after taxes (NOPAT) for 2013? 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.
2013 $ million
2012 $ 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.
2013 $ million
2012 $ million
What is the free cash flow for 2013? 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 2013? 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.
2013 2012 Sales $4,950.0 $4,500.0 Operating costs excluding depreciation 4,208.0 3,825.0 Depreciation and amortization 145.0 126.0 Earnings before interest and taxes $597.0 $549.0 Less: Interest 106.0 97.0 Pre-tax income $491.0 $452.0 Taxes (40%) 196.4 180.8 Net income available to common stockholders $294.6 $271.2 Common dividends $265.0 $217.0Explanation / Answer
NOPAT 2013 Sales 4950000000 Operating costs excluding depreciation 4208000000 Depreciation and amortization 145000000 Earnings before interest and taxes 597000000 Taxes (40%) 238800000 NOPAT 2013 358200000 net operating working capital for both years 2013 2012 Operating current asset Amount Amount Cash 76000000 63000000 Accounts receivable 702000000 540000000 Inventories 900000000 720000000 Total operating current asset A 1678000000 1323000000 Operating Liability Accounts payable 362000000 315000000 Accruals 311000000 270000000 Total operating current asset B 673000000 585000000 Net operating working capital A-B 1005000000 738000000 total net operating capital =NOWC+Operating Longterm Asset 2013 2012 Net operating working capital A-B 673000000 585000000 Net plant and equipment 1449000000 1260000000 total net operating capital 2122000000 1845000000 Free Cash Flows =NOPAT-Net Investment in Operating Capital 2013 NOPAT 358200000 LessNet Investment in Operating Capital=Net operating capital of 2012 less net operating capital of 2012 277000000 Free Cash Flows 81200000 ROIC =NOPAT/OPERATING CAPITAL 2013 =35820000/21200000 16.88%
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