3.17

Powell Panther Corporation: Income Statements for Year Ending December 31 d. How much 3.12 FREE CASH FLOW Financial information for Pow (Millions of Dollars) Sales Operating costs excluding depreciation and amortization EBITDA Direction & amortization Caming before interest and taxes (EBIT Interest Earnings before taxes (EBT Taxes ON Net income 2016 $1.200.0 1,020.0 $ 1800 30.0 $ 150,0 21,7 $ 1283 51.3 $77,0 Powell Panther Corporation: Balance Sheets as of December 31 (Millions of Dollars) 2016 2015 Assets Cash and equivalents Accounts receivable Inventories Total current assets Net plant and equipment Total assets $ 12.0 180.0 180.0 $372.0 300.0 $672.0 $ 10,0 150.0 200.0 $360.0 250.0 S610.0 Liabilities and Equity Accounts payable Accruals Notes payable Total current abilities Long-term bonds Total abilities Common stock (50 million shares) $108.0 72.0 67.0 $247.0 150.0 $3970 50.0 225.0 $275.0 $672.0 5 90.0 600 515 52015 150.0 $3515 50.0 208.5 $258.5 $6100 Retained earnings Common equity Total liabilities and equity a. What was net operating working capital for 2015 and 2016? b. What was the 2016 free cash flow? c. How would you explain the large increase in 2016 dividends? 3-18 PERSONAL TAXES Mary Jarvis is a single individual who is working for the previous year. She has assembled the following relevant information She received 582,000 in salary. She received $12,000 of divide . on filing her . Question 1 (5 points) For the following seven questions, use the income statement and balance sheet from Problem 3-17 on page 94. What is the change in net operating working capital in 2016? Do not use dollar signs. Question 2 (5 points) What is the capital expenditure for 2016? Do not use dollar signs. Question 3 (5 points) What is the free cash flow for 2016? Do not use dollar signs