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Free Cash Flows Rhodes Corporation's financial statements are shown below

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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)

  2020  2019

Sales $13,000   $11,000

Operating costs excluding depreciation 11,522 9,688

 Depreciation and amortization 350  320    

Earnings before interest and taxes $1,128  $992

Less interest 120  100    

Pre-tax income $1,008  $892

Taxes (25%) 252  223

Net income available to common stockholders$756  $669

Common dividends $203  $200

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

  2020  2019

Assets

Cash $450  $400

Short-term investments 220  200

Accounts receivable 2,750  1,300   

 Total current assets $4,970  $4,400

Net plant and equipment 3,850  3,500

Total assets $8,820  $7,900 

Liabilities and Equity

Accounts payable $900  $800

Accruals 450  400

Notes payable 186  100   

 Total current liabilities $1,536  $1,300

Long-term debt 900  800    

Total liabilities $2,436  2,100

Common stock 4,931  4,900

Retained earnings 1,453  900    

Total common equity $6,384  $5,800

Total liabilities and equity $8,820  $7,900

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

 

 

What is the free cash flow for 2020? 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.