Using Rhodes Corporation’s financial statements (shown below)

Using Rhodes Corporation's financial statements (shown below), answer the following questions.

a. What is the net operating profit after taxes (NOPAT) for 2010?

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 2010?

e. What is the ROIC for 2010?

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? Rhodes Corporation: Income Statements for Year Ending December 31 (Millions of Dollars)

2009 2010 Sales $11,000 9,360 380 $10,000 Operating costs excluding depreciation Depreciation Earnings before interest a


Rhodes Corporation: Balance Sheets as of December 31 (Millions ofDollars)

2009 2010 Sales $11,000 9,360 380 $10,000 Operating costs excluding depreciation Depreciation Earnings before interest a
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Free Cash Flow
Free cash flow (FCF) represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets. Unlike earnings or net income, free cash flow is a measure of profitability that excludes the...

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