Using Rhodes\' Corporation\'s financial statements, c. What are the amounts of t

Question

Using Rhodes' Corporation's financial statements,

c. What are the amounts of total net operating capital for both years?

d. What is the free cash flow for 2013?

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

2012 Sales 11000 Operating costs 9360 EBITDA 1640 Dep 380 EBIT 1260 Interest 120 EBT 1140 Tax 456 PAT 684 NOPAT 410.4 2012 2011 Current assets 3850 3500 current liabilities 2034 1700 Net operating working capital 1816 1800 2012 2011 ebit 1260 1140 EBIT*(1-T) 756 684 DEP 380 360 NWC -16 0 CAPEX 460 460 FCF 660 584

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