You have just obtained financial information for the past 2 years for Powell Panther Corporation.

Answer the following questions.

a. What is the net operating profit after taxes (NOPAT) for 2002?

b. What are the amounts of net operating working capital for 2001 and 2002?

c. What are the amounts of total operating capital for 2001 and 2002?

d. What is the free cash flow for 2002?

e. How can you explain the large increase in dividends in 2002?

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Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) 2002 2001 Sales $1,200.0 $1,000.0 Operating costs excluding depreciation 1,020.0 850.0 Depreciation 30.0 25.0 Earnings before interest and taxes $ 150.0 $ 125.0 Less interest 21.7 20.2 Earnings before taxes $ 128.3 $ 104.8 Taxes (40%) 51.3 41.9 Net income available to common stockholders $ 77.0 $ 62.9 Common dividends 60.5 4.4