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Corporation is shown below: Powell Panther Corporation: Income Statements for Year Ending December 31 (millions of dollars) 2021 2020 Sales $2,070.0 $1,800.0 Operating costs excluding

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Corporation is shown below: Powell Panther Corporation: Income Statements for Year Ending December 31 (millions of dollars) 2021 2020 Sales $2,070.0 $1,800.0 Operating costs excluding depreciation and amortization 1.604.0 1.530.0 EBITDA $ 466.0 $ 270.0 Depreciation and amortization 63.0 50.0 Earnings before interest and taxes (EBIT) $ 403.0 $ 220.0 Interest 45.5 39.6 Earnings before taxes (EBT) $ 357.5 $ 180.4 Taxes (25%) 143.0 22.2 Net income $ 214.5 $ 108.2 Common dividends $ 193.1 86.6 Powell Panther Corporation: Balance Sheets as of December 31 (millions of dollars) 2021 2020 Assets Cash and equivalents Accounts receivable Inventories Total current assets Net plant and equipment Total assets Liabilities and Equity Accounts payable $ 26.0 228.0 410.0 $ 664.0 630.0 $1,294.0 $ 20.0 198.0 342.0 $ 560.0 5040 $1,064.0 $198.0 $ 180.0 Total current assets $ 664,0 $ 560.0 Net plant and equipment 630.0 504, Total assets $1,294.0 $1,064.0 Liabilities and Equity Accounts payable $ 1980 $ 180.0 Accruals 164.0 126,0 Notes payable 41.4 360 Total current liabilities $ 403.4 $342.0 Long-term bonds 414.2 360.0 Total liabilities $ 817.4 $ 702,0 Common stock 422.8 329.6 Retained earnings 32.4 Common equity $426,6 $362.0 Total liabilities and equity $1,294,0 $1,064.0 Write out your answers completely. For example, 25 million should be entered as 25,000,000. Round your answers to the nearest dollar, if necessary. Negative values, if any, should be indicated by a minus sign a. What was net operating working capital for 2020 and 2021? Assume the firm has no excess cash 2020: 5 20215 b. What was the 2021 free cash flow? $ c. How would you explain the large increase in 2021 dividends? 1. The large increase in net income from 2020 to 2021 explains the large increase in 2021 dividends. 11. The large increase in EBIT from 2020 to 2021 explains the large increase in 2021 dividends. 11. The large increase in free cash flow from 2020 to 2021 explains the large increase in 2021 dividends IV. The large increase in sales from 2020 to 2021 explains the large increase in 2021 dividends V. The large increase in retained earnings from 2020 to 2021 explains the large increase in 2021 dividends

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