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Financial information for Powell Panther Corporation is shown below:

Powell Panther Corporation: Income Statements for Year Ending December $31($millions of dollars$)$

$20212020$

Sales $ $3,000\mathrm{.}0$ $ $2,500\mathrm{.}0$

Operating costs excluding depreciation and amortization $2,325\mathrm{.}02,125\mathrm{.}0$

EBITDA $ $675\mathrm{.}0$ $ $375\mathrm{.}0$

Depreciation and amortization $65\mathrm{.}050\mathrm{.}0$

Earnings before interest and taxes $($EBIT$)$ $ $610\mathrm{.}0$ $ $325\mathrm{.}0$

Interest $66\mathrm{.}055\mathrm{.}0$

Earnings before taxes $($EBT$)$ $ $544\mathrm{.}0$ $ $270\mathrm{.}0$

Taxes $(25\%)217\mathrm{.}6108\mathrm{.}0$

Net income $ $326\mathrm{.}4$ $ $162\mathrm{.}0$

Common dividends $ $293\mathrm{.}8$ $ $129\mathrm{.}6$

Powell Panther Corporation: Balance Sheets as of December $31($millions of dollars$)$

$20212020$

Assets

Cash and equivalents $ $30\mathrm{.}0$ $ $25\mathrm{.}0$

Accounts receivable $420\mathrm{.}0350\mathrm{.}0$

Inventories $563\mathrm{.}0450\mathrm{.}0$

Total current assets $ $1,013\mathrm{.}0$ $ $825\mathrm{.}0$

Net plant and equipment $650\mathrm{.}0500\mathrm{.}0$

Total assets $ $1,663\mathrm{.}0$ $ $1,325\mathrm{.}0$

Liabilities and Equity

Accounts payable $ $180\mathrm{.}0$ $ $150\mathrm{.}0$

Accruals $195\mathrm{.}0150\mathrm{.}0$

Notes payable $60\mathrm{.}050\mathrm{.}0$

Total current liabilities $ $435\mathrm{.}0$ $ $350\mathrm{.}0$

Long$-$term bonds $600\mathrm{.}0500\mathrm{.}0$

Total liabilities $ $1,035\mathrm{.}0$ $ $850\mathrm{.}0$

Common stock $546\mathrm{.}8426\mathrm{.}4$

Retained earnings $81\mathrm{.}248\mathrm{.}6$

Common equity $ $628\mathrm{.}0$ $ $475\mathrm{.}0$

Total liabilities and equity $ $1,663\mathrm{.}0$ $ $1,325\mathrm{.}0$

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.

What was net operating working capital for $2020$ and $2021?$ Assume the firm has no excess cash.

$2020$: $

$2021$: $

What was the $2021$ free cash flow?

$

How would you explain the large increase in $2021$ dividends?

The large increase in net income from $2020$ to $2021$ explains the large increase in $2021$ dividends.

The large increase in EBIT from $2020$ to $2021$ explains the large increase in $2021$ dividends.

The large increase in free cash flow from $2020$ to $2021$ explains the large increase in $2021$ dividends.

The large increase in sales from $2020$ to $2021$ explains the large increase in $2021$ dividends.

The large increase in retained earnings from $2020$ to $2021$ explains the large increase in $2021$ dividends.

$-$Select$-$