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Powell Panther Corporation: Income Statements for Year Ending December 31 (millions of dollars) 2021 Sales $2,990.0 Operating costs excluding depreciation and amortization 2.467.0 2020 $2,300.0

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Powell Panther Corporation: Income Statements for Year Ending December 31 (millions of dollars) 2021 Sales $2,990.0 Operating costs excluding depreciation and amortization 2.467.0 2020 $2,300.0 1.955.0 $345.0 62.0 EBITDA $ 523.0 Depreciation and amortization 75.0 Earnings before interest and taxes (EBIT) $ 448.0 $ 283.0 50.6 Interest Earnings before taxes (EBT) 65.8 $382.2 152.9 $ 232.4 Taxes (25%) 93.0 Net income $ 229.3 $ 139.4 Common dividends $206.4 $111.5 Powell Panther Corporation: Balance Sheets as of December 31 (millions of dollars) 2021 2020 Assets Cash and equivalents $25.0 $23.0 359.0 276.0 Accounts receivable Inventones 423.0 368.0 Total current assets $807.0 $667.0 745.0 621.0 Net plant and equipment Total assets $1,552.0 $1,288.0 Liabilities and Equity $ 173.0 $138.0 Accounts payable Accruals 79.0 69.0 Notes payable 19.0 16.0 Total current liabilities $311.8 $253.0 Long-term bonds 590.0 160.0 Total abili $909.8 $713.0 Common stock $33.1 577.4 64.8 Retained earnings 41.9 Common equity $ 642.2 $575.0 Total liabilities and equity $1,552.0 $1,200.0 Write out your answers completely. For example, 25 million should be entered as 25,000,000. Round your answers to the nearest dollar, If necessary. Negative values, if any, should be indicated by a minus sign a. What was net operating working capital for 2020 and 20217 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? 1. The large increase in net income from 2020 to 2021 explains the large increase in 2021 dividends. II. The large increase in EBIT from 2020 to 2021 explains the large increase in 2021 dividends. III. The large increase in free cash flow 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

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