FREE CASH FLOW: Financial information for Powell Panther Corporation (there Income Statements and Balance Sheets) are shown below. Based upon the financial information, please answer the following questions (PLEASE SHOW YOUR WORK AND INCLUDE ANY AND ALL FORMULAS YOU USED TO ARRIVE AT YOUR ANSWERS):

a. What was net operating working capital for 2015 and 2016?

b. What was the 2016 free cash flow?

c. How would you explain the large increase in 2016 dividends?

Income Statements for Year Ending December 31 (Millions of Dollars)
				2016	2015
Sales				$1,200.0	$1,000.0
Operating costs excluding depreciation and amortization				1,020.0	850.0
EBITDA				$180.0	$150.0
Depreciation and amortization				30.0	25.0
Earnings before interest and taxes (EBIT)				$150.0	$125.0
Interest				21.7	20.2
Earnings before taxes (EBT)				$128.3	$104.8
Taxes (40%)				51.3	41.0
Net income				$77.0	$62.9
Balance Sheets as of December 31, 2016 (Millions of Dollars)
Assets				2016	2015
Cash and equivalents				$12.0	$10.0
Accounts Receivable				180.0	150.0
Inventories				180.0	300.0
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
Long-term debt				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