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

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

$2021,2020$

Assets

Cash and equivalents

Accounts receivable

Inventories

Total current assets

Net plant and equipment

Total assets

Liabilities and Equity

Accounts payable

Accruals

Notes payable

Total current liabilities

Long$-$term bonds

Total liabilities

Common stock

Retained earnings

Common equity

Total liabilities and equity

$$207\mathrm{.}0$$$180\mathrm{.}0$

$288\mathrm{.}0,240\mathrm{.}0$

${75\mathrm{.}0}_{,}{60\mathrm{.}0}_{?}$

$$570\mathrm{.}0,$$$480\mathrm{.}0$

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

$2020$: $

$2021$: $

b$.$ What was the $2021$ free cash flow?

$

c$.$ How would you explain the large increase in $2021$ dividends?

I. The large increase in net income from $2020$ to $2021$ explains the large increase in $2021$ dividends.

II$.$ The large increase in free cash flow from $2020$ to $2021$ explains the large increase in $2021$ dividends.

III. The large increase in EBIT from $2020$ to $2021$ explains the large increase in $2021$ dividends.

IV$.$ The large increase in sales from $2020$ to $2021$ explains the large increase in $2021$ dividends.

V$.$ The large increase in retained earnings from $2020$ to $2021$ explains the large increase in $2021$ dividends.