Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars)

$132.0 Financial information for Powell Panther Corporation is shown below: Powell Panther Corporation Income Statements for Year Ending December 31 (Millions of dollars) 2018 2017 Sales $2,340.0 $1,800.0 Operating costs excluding depreciation and amortization 1989.0 1.530.0 EBITDA $ 351.0 $ 270.0 Depreciation and amortization 55.0 50.0 Earnings before interest and taxes (EBIT) $ 296.0 $ 220.0 Interest 52.0 40.0 Earnings before taxes (EBT) $ 244.0 $ 180.0 Taxes (40%) 97.6 72.0 Net Income $ 146.4 $ 108.0 Common dividends $ 86.0 Powell Panther Corporation Balance Sheets as of December 31 (Millions of dollars) 2018 2017 Assets Cash and equivalents $ 24.0 5 20.0 Accounts receivable 216.0 180.0 Inventories 540.0 432.0 Total current assets $ 780.0 $ 632.0 Net plant and equipment 5540 504.0 Total assets $ 1,334.0 $ 1,136.0 Liabilities and Equity Accounts payable 5 170.0 $ 162.0 Accrual 68.0 54.0 Notes payable 422 36,0 Total current liabilities $ 293.0 $ 252.0 Long term bonds 460 0 360.0 Total liabilities $ 7610 5 6120 Common stock 525.6 491.0 Retained earnings 474 33.0 Common equity $ 523.0 $ $24.0 Total liabilities and equity $1,334.0 $ 1,136.0 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 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 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 2016 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. IEL. 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. -Select- 11