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Free Cash Flows

Rhodes Corporation's financial statements are shown below.

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

	2022			2021
Sales	$	12,000		$	11,000
Operating costs excluding depreciation		10,610			9,702
Depreciation and amortization		430			390
Earnings before interest and taxes	$	960		$	908
Less interest		140			100
Pre-tax income	$	820		$	808
Taxes (25%)		205			202
Net income available to common stockholders	$	615		$	606
Common dividends	$	205		$	200

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

	2022			2021
Assets
Cash	$	550		$	500
Short-term investments		210			200
Accounts receivable		2,750			2,500
Inventories		1,550			1,500
Total current assets	$	5,060		$	4,700
Net plant and equipment		3,650			3,500
Total assets	$	8,710		$	8,200
Liabilities and Equity
Accounts payable	$	1,100		$	1,000
Accruals		550			500
Notes payable		364			200
Total current liabilities	$	2,014		$	1,700
Long-term debt		1,100			1,000
Total liabilities	$	3,114			2,700
Common stock		3,986			4,300
Retained earnings		1,610			1,200
Total common equity	$	5,596		$	5,500
Total liabilities and equity	$	8,710		$	8,200

Suppose the federal-plus-state tax corporate tax is 25%. Answer the following questions.

What is the net operating profit after taxes (NOPAT) for 2022? Enter your answer in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answer to the nearest whole number.

$ million

What are the amounts of net operating working capital for both years? Enter your answers in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answers to the nearest whole number.

2022: $ million

2021: $ million

What are the amounts of total net operating capital for both years? Enter your answers in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answers to the nearest whole number.

2022: $ million

2021: $ million

What is the free cash flow for 2022? Enter your answer in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Cash outflow, if any, should be indicated by a minus sign. Round your answer to the nearest whole number.

$ million

What is the ROIC for 2022? 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 answers in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answers to the nearest whole number.

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

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