Rhodes Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) 2013 2012 Sales $8,250.0 $7,500.0
Question:
Rhodes Corporation: Income Statements for Year Ending December 31 (Millions of Dollars)
| 2013 | 2012 | ||
| Sales | $8,250.0 | $7,500.0 | |
| Operating costs excluding depreciation | 6,188.0 | 6,375.0 | |
| Depreciation and amortization | 244.0 | 188.0 | |
| Earnings before interest and taxes | $1,818.0 | $937.0 | |
| Less: Interest | 177.0 | 161.0 | |
| Pre-tax income | $1,641.0 | $776.0 | |
| Taxes (40%) | 656.4 | 310.4 | |
| Net income available to common stockholders | $984.6 | $465.6 | |
| Common dividends | $886.0 | $372.0 |
Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars)
| 2013 | 2012 | ||
| Assets | |||
| Cash | $130.0 | $113.0 | |
| Short-term investments | 42.0 | 38.0 | |
| Accounts receivable | 825.0 | 750.0 | |
| Inventories | 2,160.0 | 1,800.0 | |
| Total current assets | $3,157.0 | $2,701.0 | |
| Net plant and equipment | 2,438.0 | 1,875.0 | |
| Total assets | $5,595.0 | $4,576.0 | |
| Liabilities and Equity | |||
| Accounts payable | $825.0 | $750.0 | |
| Accruals | 750.0 | 600.0 | |
| Notes payable | 165.0 | 150.0 | |
| Total current liabilities | $1,740.0 | $1,500.0 | |
| Long-term bonds | 1,650.0 | 1,500.0 | |
| Total liabilities | $3,390.0 | $3,000.0 | |
| Common stock | 1,966.4 | 1,436.0 | |
| Retained earnings | 238.6 | 140.0 | |
| Total common equity | $2,205.0 | $1,576.0 | |
| Total liabilities and equity | $5,595.0 | $4,576.0 | |
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.
| 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 |
PLEASE LABEL EVERYTHING WITH THE ANSWERS!
Free Cash Flows
Rhodes Corporation: Income Statements for Year Ending December 31 (Millions of Dollars)
| 2013 | 2012 | ||
| Sales | $8,250.0 | $7,500.0 | |
| Operating costs excluding depreciation | 6,188.0 | 6,375.0 | |
| Depreciation and amortization | 244.0 | 188.0 | |
| Earnings before interest and taxes | $1,818.0 | $937.0 | |
| Less: Interest | 177.0 | 161.0 | |
| Pre-tax income | $1,641.0 | $776.0 | |
| Taxes (40%) | 656.4 | 310.4 | |
| Net income available to common stockholders | $984.6 | $465.6 | |
| Common dividends | $886.0 | $372.0 |
Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars)
| 2013 | 2012 | ||
| Assets | |||
| Cash | $130.0 | $113.0 | |
| Short-term investments | 42.0 | 38.0 | |
| Accounts receivable | 825.0 | 750.0 | |
| Inventories | 2,160.0 | 1,800.0 | |
| Total current assets | $3,157.0 | $2,701.0 | |
| Net plant and equipment | 2,438.0 | 1,875.0 | |
| Total assets | $5,595.0 | $4,576.0 | |
| Liabilities and Equity | |||
| Accounts payable | $825.0 | $750.0 | |
| Accruals | 750.0 | 600.0 | |
| Notes payable | 165.0 | 150.0 | |
| Total current liabilities | $1,740.0 | $1,500.0 | |
| Long-term bonds | 1,650.0 | 1,500.0 | |
| Total liabilities | $3,390.0 | $3,000.0 | |
| Common stock | 1,966.4 | 1,436.0 | |
| Retained earnings | 238.6 | 140.0 | |
| Total common equity | $2,205.0 | $1,576.0 | |
| Total liabilities and equity | $5,595.0 | $4,576.0 | |
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.
| 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 |
This are the asnwers i got. NOTE: EVERYTHING IN BOLD I GOT WRONG SO PLEASE CORRECT!
1) NOPAT for 2013 = 1818 * (1 - 0.40) = $1090.8 millions
2) NOWC for 2013 = 130+825+2160-825-750 = $1,540
for 2012 = 113+750+1800-750-600 = $1,313
3) Total Net Operating Capital for 2013 = 1,540 + 2438 = $3,978
2012 = 1,313 + 1875 = $3,188
4) Free Cash flow for 2013 = (1818-0.6) + 244 - (3027-2588)+(1740-1500) - (2438-1875+244) = $816.8
5) ROIC for 2013 = 1090.8/(5595-130-1740) = 1090.8/3725) = 29.28%
6) After tax interest payments = $ 106.2 million
Increase in debt =($150)
Payment of dividends =$886
Rwourchase Issue of stock =($629)
Purchase of short term investments =$4
Expert Answer:
Hence the resultant excel sheet is as follows Result in Text format Answer a Net ... View the full answer
