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? (Hint: remember that a net use can be negative.)
|
|
2010
|
2009
|
|
Sales
|
$11,000
|
$10,000
|
|
Operating costs excluding
Depreciation
|
9,360
|
8,500
|
|
Decpreciation
|
380
|
360
|
|
Earnings before interest and taxes
|
$1,260
|
$1,140
|
|
Less Interest
|
120
|
100
|
|
Earnings before taxes
|
$1,140
|
$1,040
|
|
Taxes 40%
|
456
|
416
|
|
Net income available to common stockholders
|
684
|
624
|
|
Common dividends
|
220
|
220
|
|
|
|
|
|
|
2010
|
2009
|
|
Assets
|
|
|
|
Cash
|
$550
|
$500
|
|
Short-term investments
|
110
|
100
|
|
Accounts receivable
|
2,750
|
2,500
|
|
Inventories
|
1,650
|
1,500
|
|
Total current assets
|
$5,060
|
$4,600
|
|
Net Plant & Equipment
|
3,850
|
3,500
|
|
Total Assets
|
$8,910
|
$8,100
|