Rhodes Corporation’s financial statements are shown after part f. Suppose the federal-plus-state tax corporate tax is 25%. Answer the following questions. 

a. What is the net operating profit after taxes (NOPAT) for 2022? 

b. What are the amounts of net operating working capital for both years? 

c. What are the amounts of total net operating capital for both years? 

d. What is the free cash flow for 2022? e. What is the ROIC for 2022? 

f. 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? 

Transcribed Image Text:

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 (25%) Net income available to common stockholders Common dividends. Assets Cash Short-term investments Accounts receivable Inventories Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars) 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 2022 $11,000 9,612 380 $ 1,008 120 Total common equity Total liabilities and equity $888 222 $ 666 $ 202 2022 $ 550 110 2,750 1,650 $5,060 3,850 $8,910 $1,100 550 384 $2,034 1,100 $3,134 4,312 1,464 $5,776 $8,910 2021 $10,000 8,728 360 $ 912 100 812 203 $ $ 609 $ 200 2021 $ 500 100 2,500 1,500 $4,600 3,500 $8,100 $1,000 500 200 $1,700 1,000 $2,700 4,400 1,000 $5,400 $8,100