Problem 3-15 Free Cash Flow

Financial information for Powell Panther Corporation is shown below:

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

?	2012	2011
Sales	$2,300.0	$2,000.0
Operating costs excluding depreciation and amortization	1,898.0	1,700.0
EBITDA	$402.0	$300.0
Depreciation and amortization	62.0	56.0
Earnings before interest and taxes	$340.0	$244.0
Interest	51.0	44.0
Earnings before taxes	$289.0	$200.0
Taxes (40%)	115.6	80.0
Net income	$173.4	$120.0
Common dividends	$156.0	$96.0

Powell Panther Corporation: Balance Sheets as of December 31 (Millions of Dollars)

?	2012	2011
Assets
Cash and equivalents	$29.0	$22.0
Accounts receivable	308.0	280.0
Inventories	374.0	340.0
Total current assets	$711.0	$642.0
Net plant and equipment	616.0	560.0
Total assets	$1,327.0	$1,202.0
Liabilities and Equity
Accounts payable	$230.0	$200.0
Notes payable	46.0	40.0
Accruals	75.0	60.0
Total current liabilities	$351.0	$300.0
Long-term bonds	460.0	400.0
Total debt	$811.0	$700.0
Common stock	462.6	466.0
Retained earnings	53.4	36.0
Common equity	$516.0	$502.0
Total liabilities and equity	$1,327.0	$1,202.0

Write out your answers completely. For example, 25 million should be entered as 25,000,000.

1. What was net operating working capital for 2011 and 2012? 2011: $ 382000000 2012: $ 406000000
2. What was the 2012 free cash flow? $ ___________ ?????