Financial management week one | Accounting homework help

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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