3-10. Free cash flow Financial information for Powell Panther Corporation is shown below: Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) ? 2008 2007 Sales $3,640.0 $2,800.0 Operating costs excluding depreciation and amortization 2,821.0 2,380.0 EBITDA $819.0 $420.0 Depreciation and amortization 94.0 78.0 Earnings before interest and taxes $725.0 $342.0 Less: Interest 80.0 62.0 Earnings before taxes $645.0 $280.0 Taxes (40%) 258.0 112.0 Net income $387.0 $168.0 Common dividends $348.0 $134.0 Powell Panther Corporation: Balance Sheets as of December 31 (Millions of Dollars) ? 2008 2007 Assets Cash and equivalents $45.0 $36.0 Accounts receivable 370.0 336.0 Inventories 764.0 588.0 Total current assets $1,179.0 $960.0 Net plant and equipment 941.0 784.0 Total assets $2,120.0 $1,744.0 Liabilities and Equity Accounts payable $290.0 $252.0 Notes payable 73.0 56.0 Accruals 146.0 112.0 Total current liabilities $509.0 $420.0 Long-term bonds 728.0 560.0 Total debt $1,237.0 $980.0 Common stock 793.0 713.0 Retained earnings 90.0 51.0 Common equity $883.0 $764.0 Total liabilities and equity $2,120.0 $1,744.0 a. What was net working capital for 2007 and 2008? (Enter your answers as whole numbers. For example, an answer of $1 million should be entered as 1,000,000.) 2007: 2008: b. What was the 2008 free cash flow? (Enter your answers as whole numbers. For example, an answer of $1 million should be entered as 1,000,000.) c. How would you explain the large increase in 2008 dividends? -Select-The large increase in net income from 2007 to 2008 explains the large increase in 2008 dividends.The large increase in EBIT from 2007 to 2008 explains the large increase in 2008 dividends.The large increase in sales from 2007 to 2008 explains the large increase in 2008 dividends.The large increase in retained earnings from 2007 to 2008 explains the large increase in 2008 dividends.The large increase in free cash flow from 2007 to 2008 explains the large increase in 2008 dividends.Item 4