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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 $ $3,375\mathrm{.}0$ $ $2,700\mathrm{.}0$

Operating costs excluding depreciation and amortization $2,616\mathrm{.}02,295\mathrm{.}0$

EBITDA $ $759\mathrm{.}0$ $ $405\mathrm{.}0$

Depreciation and amortization $70\mathrm{.}054\mathrm{.}0$

Earnings before interest and taxes $($EBIT$)$ $ $689\mathrm{.}0$ $ $351\mathrm{.}0$

Interest $74\mathrm{.}359\mathrm{.}4$

Earnings before taxes $($EBT$)$ $ $614\mathrm{.}7$ $ $291\mathrm{.}6$

Taxes $(25\%)245\mathrm{.}9116\mathrm{.}6$

Net income $ $368\mathrm{.}8$ $ $175\mathrm{.}0$

Common dividends $ $331\mathrm{.}9$ $ $140\mathrm{.}0$

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

$20212020$

Assets

Cash and equivalents $ $45\mathrm{.}0$ $ $41\mathrm{.}0$

Accounts receivable $297\mathrm{.}0270\mathrm{.}0$

Inventories $518\mathrm{.}0432\mathrm{.}0$

Total current assets $ $860\mathrm{.}0$ $ $743\mathrm{.}0$

Net plant and equipment $702\mathrm{.}0540\mathrm{.}0$

Total assets $ $1,562\mathrm{.}0$ $ $1,283\mathrm{.}0$

Liabilities and Equity

Accounts payable $ $324\mathrm{.}0$ $ $270\mathrm{.}0$

Accruals $236\mathrm{.}0189\mathrm{.}0$

Notes payable $67\mathrm{.}554\mathrm{.}0$

Total current liabilities $ $627\mathrm{.}5$ $ $513\mathrm{.}0$

Long$-$term bonds $675\mathrm{.}0540\mathrm{.}0$

Total liabilities $ $1,302\mathrm{.}5$ $ $1,053\mathrm{.}0$

Common stock $170\mathrm{.}1177\mathrm{.}5$

Retained earnings $89\mathrm{.}452\mathrm{.}5$

Common equity $ $259\mathrm{.}5$ $ $230\mathrm{.}0$

Total liabilities and equity $ $1,562\mathrm{.}0$ $ $1,283\mathrm{.}0$

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 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.

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