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

2021 2020

Sales $ 1,320.0 $ 1,100.0

Operating costs excluding depreciation and amortization 1,089.0 935.0

EBITDA $ 231.0 $ 165.0

Depreciation and amortization 39.0 31.0

Earnings before interest and taxes (EBIT) $ 192.0 $ 134.0

Interest 29.0 24.2

Earnings before taxes (EBT) $ 163.0 $ 109.8

Taxes (25%) 65.2 43.9

Net income $ 97.8 $ 65.9

Common dividends $ 88.0 $ 52.7

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

2021 2020

Assets Cash and equivalents $ 13.0 $ 12.0

Accounts receivable 182.0 165.0

Inventories 182.0 165.0 T

Total current assets $ 377.0 $ 342.0

Net plant and equipment 385.0 308.0

Total assets $ 762.0 $ 650.0

Liabilities and Equity Accounts payable $ 124.0 $ 99.0

Accruals 85.0 77.0

Notes payable 26.4 22.0

Total current liabilities $ 235.4 $ 198.0

Long-term bonds 264.0 220.0

Total liabilities $ 499.4 $ 418.0

Common stock 233.0 212.2

Retained earnings 29.6 19.8

Common equity $ 262.6 $ 232.0

Total liabilities and equity $ 762.0 $ 650.0

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

a. 2020?

b. 2021?

#2. What was the 2021 free cash flow?