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Financial information for Powell Panther Corporation is shown here. What was net operating working capital for 2020 and 2021? Assume the firm has no excess

Financial information for Powell Panther Corporation is shown here.

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

  • What was the 2021 free cash flow?

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

Powell Panther Corporation: Income Statements for Year Ending December 31 (millions of dollars) 2021 2020 Sales $ 1,200.0 $1,000.0 Operating costs excluding depreciation and amortization 1,020.0 850.0 EBITDA $ 180.0 $ 150.0 30.0 25.0 Depreciation and amortization Earnings before interest and taxes (EBIT) $ 150.0 $ 125.0 Interest 21.7 20.2 Earnings before taxes (EBT) $ 128.3 $ 104.8 Taxes (25%) 32.1 26.2 Net income $ 96.2 $ 78.6 Common dividends $ 79.7 $ 61.3 Powell Panther Corporation: Balance Sheets as of December 31 (millions of dollars) 2021 2020 Assets $ 12.0 $ 10.0 Cash and equivalents Accounts receivable 180.0 150.0 Inventories 180.0 200.0 Total current assets $ 372.0 $360.0 Net plant and equipment 300.0 250.0 Total assets $ 672.0 $ 610.0 Liabilities and Equity Accounts payable $108.0 $ 90.0 Accruals 72.0 60.0 Notes payable 67.0 51.5 Total current liabilities $247.0 $201.5 Powell Panther Corporation: Balance Sheets as of December 31 (millions of dollars) 2021 2020 Long-term bonds 150.0 150.0 Total liabilities $397.0 $351.5 Common stock (50 million shares) 50.0 50.0 Retained earnings 225.0 208.5 Common equity $275.0 $ 258.5 Total liabilities and equity $672.0 $ 610.0

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