Financial information for Powell Panther Corporation is shown below:

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

$20212020$

Sales $ $1,300\mathrm{.}0$ $ $1,000\mathrm{.}0$

Operating costs excluding depreciation and amortization $975\mathrm{.}0850\mathrm{.}0$

EBITDA $ $325\mathrm{.}0$ $ $150\mathrm{.}0$

Depreciation and amortization $26\mathrm{.}021\mathrm{.}0$

Earnings before interest and taxes $($EBIT$)$ $ $299\mathrm{.}0$ $ $129\mathrm{.}0$

Interest $28\mathrm{.}622\mathrm{.}0$

Earnings before taxes $($EBT$)$ $ $270\mathrm{.}4$ $ $107\mathrm{.}0$

Taxes $(25\%)108\mathrm{.}242\mathrm{.}8$

Net income $ $162\mathrm{.}2$ $ $64\mathrm{.}2$

Common dividends $ $146\mathrm{.}0$ $ $51\mathrm{.}4$

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

$20212020$

Assets

Cash and equivalents $ $17\mathrm{.}0$ $ $15\mathrm{.}0$

Accounts receivable $156\mathrm{.}0130\mathrm{.}0$

Inventories $288\mathrm{.}0240\mathrm{.}0$

Total current assets $ $461\mathrm{.}0$ $ $385\mathrm{.}0$

Net plant and equipment $263\mathrm{.}0210\mathrm{.}0$

Total assets $ $724\mathrm{.}0$ $ $595\mathrm{.}0$

Liabilities and Equity

Accounts payable $ $66\mathrm{.}0$ $ $60\mathrm{.}0$

Accruals $52\mathrm{.}040\mathrm{.}0$

Notes payable $26\mathrm{.}020\mathrm{.}0$

Total current liabilities $ $144\mathrm{.}0$ $ $120\mathrm{.}0$

Long$-$term bonds $260\mathrm{.}0200\mathrm{.}0$

Total liabilities $ $404\mathrm{.}0$ $ $320\mathrm{.}0$

Common stock $284\mathrm{.}6255\mathrm{.}8$

Retained earnings $35\mathrm{.}419\mathrm{.}2$

Common equity $ $320\mathrm{.}0$ $ $275\mathrm{.}0$

Total liabilities and equity $ $724\mathrm{.}0$ $ $595\mathrm{.}0$

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.