Powell Panther Corporation: Income Statements for Year Ending December 31 (millions of dollars) 2021 2020 Sales $1,150.0 $1,000.0 863.0 850.0 Operating costs excluding depreciation and amortization EBITDA $287.0 $ 150.0 Depreciation and amortization 26.0 22.0 Earnings before interest and taxes (EBIT) $ 261.0 $128.0 Interest 25.3 22.0 Earnings before taxes (EBT) $ 235.7 $106.0 Taxes (25%) 94.3 42.4 Net income $ 141.4 63.6 Common dividends. $127.3 $ 50.9 Powell Panther Corporation: Balance Sheets as of December 31 (millions of dollars) 2021 2020 Assets Cash and equivalents $11.0 $10.0 Accounts receivable 169.0 130.0 Inventories 240.0 200.0 Total current assets $420.0 $340.0 Net plant and equipment 264.0 220.0 Total assets $684.0 $560.0 Liabilities and Equity Accounts payable $69.0 $60.0 Accruals 58.0 50.0 Notes payable 23.0 20.0 Total current liabilities $150.0 $130.0 Long-term bonds 230.0 200.0 Total liabilities $380.0 $330.0 Common stock 270.8 210.9 Retained earnings 33.2 19.1 Common equity $304.0 $230.0 Accruas 30.0 24.0 Notes payable 23.0 20.0 Total current liabilities $150.0 $130.0 Long-term bonds 230.0 200,0 Total tables $380,0 $330.0 Common stock 270.8 210.9 Retained earnings 31.2 19.1 Common equity $304.0 1230.0 Total abities and equity $684.0 $560.0 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 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? 1. The large increase in net income from 2020 to 2021 explains the large increase in 2021 dividends. II. The large increase in free cash flow from 2020 to 2021 explains the large increase in 2021 dividends 11. The large increase in EBIT from 2020 to 2021 explains the large increase in 2021 dividends TV. 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. SENT V Grade it Now Save & Continue Continue without saving