3-15 Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars)

?	2012	2011
Sales	$1,200.0	$1,000.0
Operating costs excluding depreciation and amortization	1,020.0	850.0
EBITDA	$180.0	$150.0
Depreciation and amortization	30.0	25.0
Earnings before interest and taxes	$150.0	$125.0
Interest	21.7	20.2
Earnings before taxes	$128.3	$104.8
Taxes (40%)	51.3	41.9
Net income	$77.0	$62.9
Common dividends	$60.5	$46.4

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

	2012	2011
Assets
Cash and equivalents	$12.0	$10.0
Accounts receivable	180.0	150.0
Inventories	180.0	200.0
Total current assets	$372.0	$360.0
Net plant and equipment	300.0	250.0
Total assets	$672.0	$610.0
Liabilities and Equity
Accounts payable	$108.0	$90.0
Notes payable	67.0	51.5
Accruals	72.0	60.0
Total current liabilities	$247.0	$201.5
Long-term bonds	150.0	150.0
Total debt	$397.0	$351.5
Common stock	50.0	50.0
Retained earnings	225.0	208.5
Common equity	$275.0	$258.5
Total liabilities and equity	$672.0	$610.0

Write out your answers completely. For example, 25 million should be entered as 25,000,000.

What was net operating working capital for 2011 and 2012? 2011: $ 2012: $

What was the 2012 free cash flow? $

How would you explain the large increase in 2012 dividends?