Financial information for Powel Panther Corporation is shown below. Powell Panther Corporation Income Statements for Year Ending December 31 (millions of dollars) 2021 2020 Sales 53,480.0 52.900.0 Operating costs excluding depreciation and amortization 2.958.0 2465.0 EBITOA $ 522.0 $435.0 Depreciation and amortization 22.0 670 Earnings before interest and taxes (EBIT) $445.0 $ 358.0 Interest 76.6 Earnings before taxes (EBT) $38.4 $ 304.2 Taxes (25%) 1474 1212 Net income 221.0 $ 162.5 Common dividends 199.9 $ 146.0 Powell Panther Corporation: Balance Sheets as of December 31 (millions of dollars) 2021 2020 Assets Cash and equivalent $ 38,0 Accounts receivable 377.0 290.0 Inventories 8000 Total current sets $1,223,0 $1,0240 Net plant and equipment 2620 6620 Total assets $1,990.0 51,691.0 Liabilities and Equity Accounts payable $267.0 $ 232,0 Accrual 151.0 116.0 Nobes payable 53.2 Total current abilities $487.6 $ 406,0 Long-term bonds 696.0 580.0 Total abilities $1,183,6 $ 9860 Common stock 650.2 Retained earnings 25.9 54.0 Common equity $ 806.4 $ 2050 Total abilities and equity $1,990.0 $1,691.0 write out your answers completely. For example, 25 million should be entered as 25,000,000. Round your answers to the nearest dollar, necessary. Negative values, it any should be indicated by a minussi 729.5 a. What was net operating working capital for 2020 and 2021? Assume the firm has no excess cash. 2020: $ 2021: $ b. What was the 2021 free cash flow? $ c. How would you explain the large increase in 2021 dividends? 1. The large increase in free cash flow from 2020 to 2021 explains the large increase in 2021 dividends. II. The large increase in net income from 2020 to 2021 explains the large increase in 2021 dividends. III. The large increase in EBIT 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. Select