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$)$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$)$

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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? $($Multiple choice question$)$

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

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

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

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

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