Financial information for Powell Panther Corporation is shown below: Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) 2018 2017 Sales $ 1,980.0 $ 1,800.0 Operating costs excluding depreciation and amortization 1.485.0 1.530.0 EBITDA $ 495.0 $ 270.0 Depreciation and amortization 61.0 47.0 Earnings before interest and taxes (EBIT) $ 434.0 $ 223.0 Interest 44.0 40.0 Earnings before taxes (EBT) $ 390.0 $ 183.0 Taxes (40%) 156.0 73.2 Net income $ 234.0 $ 109.8 Common dividends $ 211.0 $ 83.0 Powell Panther Corporation: Balance Sheets as of December 31 (Millions of Dollars) 2018 2017 Assets Cash and equivalents $ 34.0 $ 27.0 Accounts receivable 277.0 252.0 Inventories 351.0 270.0 Total current assets $ 662.0 $ 549.0 Net plant and equipment 608.0 468.0 Total assets Terasse $ 1.270.0 $ 1.017.0 Liabilities and Equity Accounts payable $ 145.0 $ 126.0 Accruals 117.0 90.0 Notes payable 40.0 36.0 Total current liabilities $ 302.0 $ 252.0 Long-term bonds 396.0 360.0 Total liabilities $ 698.0 $ 612.0 Common stock 516.0 372.0 Retained earnings 56.0 33.0 Common equity $ 572.0 $ 405.0 Total liabilities and equity $ 1.270.0 $ 1.017.0 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. 2. What was net operating working capital for 2017 and 2018? Assume the firm has no excess cash. 2017: 5 2018: 5 b. What was the 2018 free cash flow? $ C. How would you explain the large increase in 2018 dividends? I. The large increase in net income from 2017 to 2018 explains the large increase in 2018 dividends. II. The large increase in EBIT from 2017 to 2018 explains the large increase in 2018 dividends. III. The large increase in sales from 2017 to 2018 explains the large increase in 2018 dividends. IV. The large increase in free cash flow from 2017 to 2018 explains the large increase in 2018 dividends. V. The large increase in retained earnings from 2017 to 2018 explains the large increase in 2018 dividends. -Select