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Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) $ 2018 2017 Sales $ 2,990.0 $2,600.0 Operating costs excluding depreciation and

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Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) $ 2018 2017 Sales $ 2,990.0 $2,600.0 Operating costs excluding depreciation and amortization 2.243.0 2,210.0 EBITDA $ 747.0 390.0 Depreciation and amortization 77.0 70.0 Earnings before interest and taxes (EBIT) $ 670.0 $320.0 Interest 66.0 57.0 Earnings before taxes (EBT) $ 604.0 $ 263.0 Taxes (40%) 241.6 105.2 Net Income $ 362.4 $ 157.8 Common dividends $ 326.0 $ 126.0 Powell Panther Corporation: Balance Sheets as of December 31 (Millions of Dollars) 2018 2017 Assets Cash and equivalents Accounts receivable $ $ 34.0 39.0 437.0 364.0 Cash and equivalents $ 39.0 $ 34.0 Accounts recelvable 437.0 364.0 Inventories 585.0 468.0 Total current assets $1,061.0 $ 866.0 Net plant and equipment 772.0 702.0 Total assets $1,833.0 $1,568.0 Liabilities and Equity Accounts payable $ 270.0 $ 200.0 Accruals 304.0 234.0 Notes payable 60.0 52.0 Total current liabilities $ 634.0 $ 494.0 Long-term bonds 598.0 520,0 Total liabilities $1,232.0 $1,014.0 Common stock 516.6 506.0 Retained earnings 84.4 48.0 Common equity $ 601.0 $ 554.0 Total liabilities and equity $1,833.0 $1,568.0 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 3. What was net operating working capital for 2017 and 2010? Assume the firm has no excess cash. 2017: 2018: $ 4:13P Write out your answers completely. For example, 25 million should be entered as Negative values, if any, should be indicated by a minus sign a. What was net operating working capital for 2017 and 2018? Assume the firm has no excess cash. 2017: $ 2018: $ b. What was the 2018 free cash flow? $ C. How would you explain the large increase in 2018 dividends? 1. The large increase in free cash flow from 2017 to 2018 explains the large increase in 2018 dividends. 11. The large increase in net income from 2017 to 2018 explains the large increase in 2018 dividends. III. The large increase in EBIT from 2017 to 2018 explains the large increase in 2018 dividends. IV. The large increase in sales from 2017 to 2018 explains the large increase in 2018 dividends. V. The large increase in retained earnings from 2017 to 2018 explains the large increase in 2018 dividends

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