Question

Rhodes Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) Sales Operating costs excluding depreciation Depreciation and amortization Earnings before interest and taxes Less Interest Pre-tax income Taxes (40%) Net income available to common stockholders Common dividends 2018 $11,050.0 8,564.0 275.0 $2,211.0 238.0 $1,973.0 789.2 $1,183.8 $1,065.0 2017 $8,500.0 7,225.0 230.0 $1,045.0 183.0 $862.0 344.8 $517.2 $414.0 Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars) 2018 2017 $112.0 56.0 1,169.0 2,656.0 $3,993.0 2,754.0 $6,747.0 $102.0 43.0 935.0 2,125.0 $3,205.0 2,295.0 $5,500.0 Assets Cash Short-term investments Accounts receivable Inventories Total current assets Net plant and equipment Total assets Liabilities and Equity Accounts payable Accruals Notes payable Total current liabilities Long-term debt Total liabilities Common stock Retained earnings $956.0 995.0 221.0 $2,172.0 2,210.0 $4,382.0 2,091.2 273.8 A $765.0 765.0 170.0 $1,700.0 1,700.0 $3,400.0 1,945.0 155.0 A A

Answer 1

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© V D C Ax 9 ENG, 02:47 = 1 30-03-2020 22 F76 X c I DE F G H I J KA 53 54 NOPAT [2018] 1326.6 [=2211*(1-0.4)] EBIT*(1-t) 55 56 57 58 a 59 60 NOWC [2018] 1986.0 (=(3993 -56)-(2172-221)] (CURRENT ASSETS - SHORT TERM INVESTMENTS) - (CURRENT LIABILITIES - NOTES PAYABLE)] 61 NOWC [2017] 1632.0 (=(3205-43) - (1700-170)] 62 63 b [ NOWC 2018 + NET FIXED ASSETS 2018] TOTAL NET OPERATING CAPITAL [2018] TOTAL NET OPERATING CAPITAL [2017] 4740.0 [1986 + 2754] 3927.0 (1632+2295] 64 65 66 c 67 68 d FREE CASH FLOW [2018] 513.6 (1326.6 - (4740-3927)] [NOPAT + CHANGE IN TOTAL NET OPERATING CAPITAL] ROIC [2018] 28.0% [1326.6/4740] NOPAT/TOTAL NET OPERATING WORKING CAPITAL) 69 70 [INTEREST EXPENSES*(1-t)] INCREASE IN NOTES PAYABLE AND LONG TERM DEBT 71 72 73 74 75 76 77 USES OF FREE CASH FLOW AFTER TAX INTEREST PAYMENT REDUCTION (INCREASE) IN DEBT PAYMENT OF DIVIDENDS REPURCHASE(ISSUE) STOCK PURCHASE (SALE) OF SHORT TERM INVESTMENTS TOTAL 142.8 [=238*(1-0.4)] -561 [=170-221+1700-2210) 1065.0 [DIVIDEND PAID] -146.2 [=1945-2091.2] 13 (56-43] 513.6 ... Sheet5 BARRING SMOLIRA Sheet8 sumproduct CONGRESS balance sheet increase decrease RHODES Sheet3 Sheet6 :