a. What was net operating working capital for 2011 and 2012?

b. What was the 2012 free cash flow?

c. How would you explain the large increase in 2012 dividends?

PROBLEM Ch3/Q15 Financial information for Powell Panther Corporation is shown here. Powell Panther Corporation: Income Statements for Year Ending December31 (Millions of Dollars) 2012 2011 Sales $1,200.0 $1,000.0 Operating costs excluding depreciation 1.020.0 850.0 EBITDA $180.0 $ 150.0 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%) 513 41.9 Net income available to common stockholders S.ZZO $ 62.9 Common dividends $ 60,5 $ 46.4 PROBLEM Ch3/Q15 Powell Panther Corporation: Balance Sheets as of December 31 (Millions of Dollars) 2012 2011 ASSETS Cash and marketable securities $ 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 million shares) 50.0 50.0 Retained earnings 225.0 208.5 Common equity $ 275.0 $ 258.5 Total liabilities and equity $ 672.0 $ 610.0