Using Rhodes\' corporatioin\'s financial statements, a. What is the net operatin

Question

Using Rhodes' corporatioin's financial statements,

a. What is the net operating profit after taxes (NOPAT) for 2013?

b. What are the amounts of net operating working capital for both years?

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

Sales $10,400.0 $8,000.0 Operating costs excluding depreciation 8,840.0 6,800.0 Depreciation and amortization 210.0 168.0 Earnings before interest and taxes $1,350.0 $1,032.0   Less: Interest 224.0 172.0 Pre-tax income $1,126.0 $860.0   Taxes (40%) 450.4 344.0 Net income available to common stockholders $675.6 $516.0 Common dividends $608.0 $413.0

Explanation / Answer

NOPAT for 2013 is 1350(1-.4)= 810 (Earnings before interest and taxes times 1 minus the tax rate)

Net working capital 2013 (3208-1708)= 1500 (Current assets minus current liabilities).

2012 (2560-1360)= 1200

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