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 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