Arlington Corporation's financial statements (dollars and shares are in millions) are provided here
Income Statement for Year Ending December 31, 2016
Sales..............................................................................$203,000
Operating costs excluding depreciation and amortization..................150,000
EBITDA...........................................................................$53,000
Depreciation & amortization.......................................................8,000
EBIT...............................................................................$45,000
Interest................................................................................7,900
EBT.................................................................................$37,100
Taxes (40%)........................................................................14,880
Net income........................................................................$22,260
Dividends paid.......................................................................5,890
Balance Sheet as of December 31
2016 2015
Assets
Costs and equivalents ...........................$15,000..................$14,000
Accounts receivable ...............................30,000...................20,000
Inventories ..........................................25,470...................16,000
Total current assets ..............................$70,470..................$50,000
Net plant and equipment .........................50,000...................48,000
Total assets.......................................$120,470..................$98,000
Liabilities and Equity
Accounts payable................................$10,900......................8,500
Accruals.............................................7,900......................5,000
Notes payable.......................................6,300......................5,500
Total current liabilities..........................$25,100...................$19,000
Long-term bonds.................................20,000...................20,0000
Total liabilities...................................$45,100.....................39,000
Common stock....................................40,000.....................40,000
Retained earnings.................................35,370....................19,000
Common equity.................................$75,370..................$59,000
Total liabilities and equity....................$120,470..................$98,000
Enter your answers in millions. For example, an answer of $25,000,000,000 should be entered as 25,000.
a. What was net operating working capital for 2015 and 2016?
b. What was Arlington's 2016 free cash flow?