Free Cash Flows
Rhodes Corporation: Income Statements for Year EndingDecember 31 (Millions of Dollars)
| 2016 | | 2015 |
| Sales | $6,900.0 | | $6,000.0 |
| Operating costs excluding depreciation | 5,175.0 | | 5,100.0 |
| Depreciation and amortization | 151.0 | | 126.0 |
| Earnings before interest and taxes | $1,574.0 | | $774.0 |
| Less Interest | 148.0 | | 129.0 |
| Pre-tax income | $1,426.0 | | $645.0 |
| Taxes (40%) | 570.4 | | 258.0 |
| Net income available to common stockholders | $855.6 | | $387.0 |
| Common dividends | $770.0 | | $310.0 |
Rhodes Corporation: Balance Sheets as of December 31(Millions of Dollars)
| 2016 | | 2015 |
| Assets |
| Cash | $72.0 | | $60.0 |
| Short-term investments | 35.0 | | 30.0 |
| Accounts receivable | 1,050.0 | | 840.0 |
| Inventories | 1,518.0 | | 1,380.0 |
| Total current assets | $2,675.0 | | $2,310.0 |
| Net plant and equipment | 1,512.0 | | 1,260.0 |
| Total assets | $4,187.0 | | $3,570.0 |
| Liabilities and Equity |
| Accounts payable | $414.0 | | $360.0 |
| Accruals | 621.0 | | 540.0 |
| Notes payable | 138.0 | | 120.0 |
| Total current liabilities | $1,173.0 | | $1,020.0 |
| Long-term debt | 1,380.0 | | 1,200.0 |
| Total liabilities | $2,553.0 | | $2,220.0 |
| Common stock | 1,432.4 | | 1,234.0 |
| Retained earnings | 201.6 | | 116.0 |
| Total common equity | $1,634.0 | | $1,350.0 |
| Total liabilities and equity | $4,187.0 | | $3,570.0 |
Using Rhodes Corporation's financial statements (shown above),answer the following questions.
- What is the ROIC for 2016? Round your answer to two decimalplaces.
________ %
- How much of the FCF did Rhodes use for each of the followingpurposes: after-tax interest, net debt repayments, dividends, netstock repurchases, and net purchases of short-term investments?(Hint: Remember that a net use can be negative.) Enteryour answer in millions. For example, an answer of $1.2 millionshould be entered as 1.2, not 1,200,000. Round your answers to onedecimal 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 |
